Delbono, Flavio ; Lambertini, Luca
(2014)
Optimal firms' mix in oligopoly with twofold environmental externality.
Bologna:
Dipartimento di Scienze economiche,
p. 20.
DOI 10.6092/unibo/amsacta/4048.
In: Quaderni - Working Paper DSE
(955).
ISSN 2282-6483.
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Abstract
We charaterise the socially optimal mix of firms in an oligopoly with both profit-seeking and labour-managed firms. The policy maker faces a twofold externality: (i) production entails the exploitation of a common pool natural resource and (ii) production/consumption pollutes the environment. We study the relationship between firms' mix and social welfare in the Cournot-Nash equilibrium of the industry and the resulting policy implications.
Abstract