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- Title
Environmental Technological Choice in a Cournot-Bertrand Model.
- Authors
Asproudis, Elias; Filippiadis, Eleftherios
- Abstract
This paper investigates the abatement technology choice in Cournot-Bertrand, as well as in pure Cournot and Bertrand duopolies. It is argued that, under certain conditions, the Bertrand firm will choose a "dirtier" technology compared to its Cournot rival. Furthermore, when competing in quantities, firms choose greener technologies than when competing in prices. This is because higher abatement rates make a firm choosing quantity relatively more aggressive than a firm choosing price, irrespective of the strategic variable of its rival. Moreover, it is shown that the introduction of abatement technologies will increase total output in the market and decrease total emissions.
- Subjects
DUOPOLIES; GREEN technology
- Publication
Journal of Industry, Competition & Trade, 2021, Vol 21, Issue 1, p43
- ISSN
1566-1679
- Publication type
Article
- DOI
10.1007/s10842-020-00339-z