We consider two regulator-firm hierarchies with transboundary pollution, and firms may have private information about their marginal cost of production. The pollution of each firm is proportional to its production. The impact of asymmetric information on social welfare can be explained by a...

We consider a monopolistic firm producing a good while polluting. This firm can adopt a cleaner technology within a finite time by incurring an investment cost decreasing exponentially with the adoption date. The firm is induced to adopt the cleaner technology at the socially optimal date by an...

We consider two regulator-firm hierarchies with transboundary pollution, and firms may have private information about their marginal cost of production. The pollution of each firm is proportional to its production. The impact of asymmetric information on social welfare can be explained by a...