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We formally study Pigouvian taxation in a duopoly market in which a CSR firm interacts with a profit maximizing firm. Unlike previous literature, we consider three different scenarios: (i) the CSR firm acts as a consumer-friendly firm, cares for not only its profits but also consumer surplus, as...
Persistent link: https://www.econbiz.de/10015211951
Is it always the case that an environmental friendly CSR firm will be preferred to a consumer caring CSR-firm in terms of the environmental damage generated in the market?. Will always an environmental friendly CSR firm be preferred to a firm which concerns only with profit maximization?. We...
Persistent link: https://www.econbiz.de/10015212066
We formally study Pigouvian taxation in a duopoly market in which a CSR firm interacts with a profit maximizing firm. Unlike previous literature, we consider three different scenarios: (i) the CSR firm acts as a consumer-friendly firm, cares for not only its profits but also consumer surplus, as...
Persistent link: https://www.econbiz.de/10015212215
The number of firms and the wage inequality increased in U.S. manufacturing industries after the late 1970s and early 1980s, when the so-called "Carter/Reagan deregulation" was implemented. This paper provides a possible theoretical explanation for this observed relationship between the number...
Persistent link: https://www.econbiz.de/10015216041
Behavioural and industrial economists have argued that, because of cognitive limitations, consumers are liable to make sub-optimal choices in complex decision problems. Firms can exploit these limitations by introducing spurious complexity into tariff structures, weakening price competition....
Persistent link: https://www.econbiz.de/10015219815
Behavioural and industrial economists have argued that, because of cognitive limitations, consumers are liable to make sub-optimal choices in complex decision problems. Firms can exploit these limitations by introducing spurious complexity into tariff structures, weakening price competition....
Persistent link: https://www.econbiz.de/10015219873
mobile networks; calls to and from the fixed network; networkbased price discrimination; and call externalities. The analysis … rates), increases social welfare, consumer surplus and networks’ profits. Depending on the strength of call externalities … increase in welfare when call externalities matter. We also apply the model to estimate the welfare effects of the recently …
Persistent link: https://www.econbiz.de/10015220912
We propose both a monopoly and a duopoly model of a two-sided market. Both settings are fully comparable, as we impose a homogeneous good produced at zero costs without capacity constraints, as well as identical parameterization of market sizes. We determine the duopoly equilibrium and the...
Persistent link: https://www.econbiz.de/10015222157
We make a case for price-increasing competition on “competitive bottleneck” two-sided markets. Unlike previous literature on price-increasing competition and two-sided markets, we abstract from product/platform differentiation, structural differences, scale effects, search costs, and...
Persistent link: https://www.econbiz.de/10015224397
In this paper, we characterize optimal environmental policy in a case where innovation in clean production technologies is developed and provided by a monopoly. Two policy instruments are considered: an emission tax on downstream polluting firms and an R& D subsidy for an upstream innovator in...
Persistent link: https://www.econbiz.de/10015225627