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Delegation and Emission Tax in a Differentiated Oligopoly

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  • Rupayan Pal

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    Abstract

    How product differentiation as well as strategic managerial delegation affects optimal emission tax rate, environmental damage and social welfare, under alternative modes of product market competition is examined. It shows that, under pure profit maximization, the (positive) optimal emission tax rate is not necessarily decreasing in degree of product differentiation, irrespective of the mode of competition.

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    Bibliographic Info

    Paper provided by eSocialSciences in its series Working Papers with number id:2263.

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    Date of creation: Nov 2009
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    Handle: RePEc:ess:wpaper:id:2263

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    Web page: http://www.esocialsciences.org

    Related research

    Keywords: product market; Emission tax; price competition; product differentiation; quantity competition; strategic managerial delegation; competition; social welfare; rate; environmental damage; profit maximization;

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    23. Miller, Nolan H & Pazgal, Amit I, 2001. "The Equivalence of Price and Quantity Competition with Delegation," RAND Journal of Economics, The RAND Corporation, vol. 32(2), pages 284-301, Summer.
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    25. Ziss, Steffen, 2001. "Horizontal mergers and delegation," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 471-492, March.
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