This paper compares price
and quantity competition in a mixed duopoly with emission tax; in a mixed
duopoly, one public firm competes with one private firm in the market. We find
that social welfare is the highest when both the firms simultaneously choose
price levels. Then, the optimal emission tax is sufficiently lower than the
marginal social damage.
References
[1]
Barcena-Ruiz, J.C. and Garzon, M.B. (2006) Mixed Oligopoly and Environmental Policy. Spanish Economic Review, 8, 139-160. http://dx.doi.org/10.1007/s10108-006-9006-y
[2]
Beladi, H. and Chao, C.C. (2006) Does Privatization Improve the Environment? Economics Letters, 93, 343-347. http://dx.doi.org/10.1016/j.econlet.2006.06.005
[3]
Kato, K. (2006) Can Allowing to Trade Permits Enhance Welfare in Mixed Oligopoly? Journal of Economics, 88, 263-283. http://dx.doi.org/10.1007/s00712-006-0206-6
[4]
Naito, T. and Ogawa, H. (2009) Direct versus Indirect Environmental Regulation in a Partially Privatized Mixed Duopoly. Environmental Economics and Policy Studies, 10, 87-100.
[5]
Ohori, S. (2006) Optimal Environmental Tax and Level of Privatization in an International Duopoly. Journal of Regulatory Economics, 29, 225-233. http://dx.doi.org/10.1007/s11149-006-6037-0
[6]
Ohori, S. (2012) Environmental Tax and Public Ownership in Vertically Related Markets. Journal of Industry, Competition and Trade, 12, 169-176. http://dx.doi.org/10.1007/s10842-010-0093-y
[7]
Matsumura, T. and Ogawa, A. (2012) Price versus Quantity in a Mixed Duopoly. Economic Letters, 116, 174-177. http://dx.doi.org/10.1016/j.econlet.2012.02.012
[8]
Nakamura, Y. (2013) Social Welfare under Quantity Competition and Price Competition in a Mixed Duopoly with Network Effects: An Analysis. Theoretical Economics Letters, 3, 211-215. http://dx.doi.org/10.4236/tel.2013.34035
[9]
Requate, T. (2006) Environmental Policy under Imperfect Competition. In: Tietenberg, T. and Folmer, H., Eds., The International Yearbook of Environmental and Resource Economics 2006/2007. A Survey of Current Issue. Edward Elgar, Cheltenham, 120-207. http://dx.doi.org/10.4337/9781847200235.00011
[10]
Barnett, A.H. (1980) The Pigouvian Tax Rule under Monopoly. American Economic Review, 70, 1037-1041.
