Environmental Degradation and the Limits to LOV
We show how consumers’ environmental concerns may limit ‘love of variety’ (LOV) and be reflected in consumers decisions. We investigate how the impact of environmental degradation on LOV influences demand and optimal product variety, and how a pollution tax on firms might be used to improve upon the market outcome and increase welfare.
|Date of creation:||Apr 2010|
|Contact details of provider:|| Postal: Dundee, DD1 4HN|
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