Environmental Degradation and the Limits to LOV
We show how consumersâ€™ environmental concerns may limit â€˜love of varietyâ€™ (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:||2010|
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