IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/126501.html

Unitization of Tanneries and Water Pollution in the Ganges in Kanpur, India: The Salience of Fixed Costs

Author

Listed:
  • Batabyal, Amitrajeet

Abstract

We study the merits of regulating water pollution in the Ganges river caused by tanneries in Kanpur, India, by unitizing or merging the polluting tanneries. We first describe the � ≥ 2 polluting tanneries in Kanpur as a Cournot oligopoly in which all tanneries incur fixed and variable costs in producing leather. Second, we derive the Nash equilibrium output of leather and profits and discuss how many tanneries can survive in this equilibrium as a function of the fixed costs. Third, we permit �

Suggested Citation

  • Batabyal, Amitrajeet, 2025. "Unitization of Tanneries and Water Pollution in the Ganges in Kanpur, India: The Salience of Fixed Costs," MPRA Paper 126501, University Library of Munich, Germany, revised 15 Sep 2024.
    • Handle: RePEc:pra:mprapa:126501
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/126501/1/MPRA_paper_126501.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Amitrajeet A. Batabyal, 2025. "Tanneries in Kanpur, India, water pollution in the Ganges, and unitization," Asia-Pacific Journal of Regional Science, Springer, vol. 9(3), pages 733-742, September.
    2. Amitrajeet A. Batabyal, 2023. "Tanneries in Kanpur and pollution in the Ganges: A theoretical analysis," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(5), pages 1114-1123, June.
    3. Farrell, Joseph & Shapiro, Carl, 1990. "Horizontal Mergers: An Equilibrium Analysis," American Economic Review, American Economic Association, vol. 80(1), pages 107-126, March.
    4. Batabyal, Amitrajeet & Kourtit, Karima & Nijkamp, Peter, 2022. "Climate Change and River Water Pollution: An Application to the Ganges in Kanpur," MPRA Paper 116453, University Library of Munich, Germany, revised 09 Jan 2023.
    5. Beladi, Hamid & Liu, Lu & Oladi, Reza, 2013. "On pollution permits and abatement," Economics Letters, Elsevier, vol. 119(3), pages 302-305.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amitrajeet Batabyal & Hamid Beladi, 2024. "Decentralized vs. Centralized Water Pollution Cleanup in the Ganges in a Model with Three Cities," Networks and Spatial Economics, Springer, vol. 24(2), pages 383-394, June.
    2. Batabyal, Amitrajeet & Beladi, Hamid, 2025. "On Unitization as a Way of Addressing Water Pollution in the Ganges in Kanpur, India," MPRA Paper 125817, University Library of Munich, Germany, revised 09 Jun 2025.
    3. Batabyal, Amitrajeet & Kourtit, Karima & Nijkamp, Peter, 2022. "Polluting tanneries and small farmers in Kanpur, India: a theoretical analysis," MPRA Paper 115216, University Library of Munich, Germany, revised 31 Aug 2022.
    4. Batabyal, Amitrajeet A. & Yoo, Seung Jick, 2024. "Heterogeneity in population and values and water pollution clean-up: The Ganges in Kanpur and Varanasi, India," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1527-1534.
    5. Rodney Beard, 2015. "N-Firm Oligopoly With General Iso-Elastic Demand," Bulletin of Economic Research, Wiley Blackwell, vol. 67(4), pages 336-345, October.
    6. Jovanovic, Dragan & Wey, Christian, 2012. "An equilibrium analysis of efficiency gains from mergers," DICE Discussion Papers 64, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    7. Kaplow, Louis & Shapiro, Carl, 2007. "Antitrust," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 15, pages 1073-1225, Elsevier.
    8. Marc Escrihuela-Villar & Ramon Faulí-Oller, 2008. "Mergers in asymmetric Stackelberg markets," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(4), pages 279-288, December.
    9. Aiyuan Tao & X. Henry Wang, 2024. "On comparing the profitability of horizontal mergers under Cournot and Bertrand competitions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(4), pages 2059-2065, June.
    10. Zemsky, Peter & Adner, Ron, 2003. "Disruptive Technologies and the Emergence of Competition," CEPR Discussion Papers 3994, C.E.P.R. Discussion Papers.
    11. repec:tsa:wpaper:0143eco is not listed on IDEAS
    12. Garcia-Gallego, Aurora & Georgantzis, Nikolaos & Gil-Molto, Maria Jose & Orts, Vicente, 2006. "Game-theoretic aspects of international mergers: Theory and case studies," International Review of Law and Economics, Elsevier, vol. 26(3), pages 395-409, September.
    13. Guilding, Chris & McManus, Lisa, 2002. "The incidence, perceived merit and antecedents of customer accounting: an exploratory note," Accounting, Organizations and Society, Elsevier, vol. 27(1-2), pages 45-59.
    14. Tomaso Duso & Klaus Gugler & Florian Szücs, 2013. "An Empirical Assessment of the 2004 EU Merger Policy Reform," Economic Journal, Royal Economic Society, vol. 123(11), pages 596-619, November.
    15. Kitto, Andrew R., 2024. "The effects of non-Big 4 mergers on audit efficiency and audit market competition☆," Journal of Accounting and Economics, Elsevier, vol. 77(1).
    16. Tarantino, Emanuele & Pavanini, Nicola & Mayordomo, Sergio, 2020. "The Impact of Alternative Forms of Bank Consolidation on Credit Supply and Financial Stability," CEPR Discussion Papers 15069, C.E.P.R. Discussion Papers.
    17. repec:tcd:wpaper:tep7 is not listed on IDEAS
    18. Nie, Pu-yan & Wang, Chan & Wen, Hong-xing, 2021. "Horizontal mergers under uniform resource constraints," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    19. Tomaso Duso & Lea Bernhardt & Joanna Piechucka, 2024. "The Evolution of Theories of Harm in EU Merger Control," Discussion Papers of DIW Berlin 2090, DIW Berlin, German Institute for Economic Research.
    20. Huck, Steffen & Konrad, Kai A. & Müller, Wieland, 2000. "Profitable horizontal mergers: A market structure-oriented view," SFB 373 Discussion Papers 2000,27, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    21. Davies, Stephen & Olczak, Matthew & Coles, Heather, 2011. "Tacit collusion, firm asymmetries and numbers: Evidence from EC merger cases," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 221-231, March.
    22. Ramón Faulí-Oller & Joel Sandonís, 2001. "To Merge Or To License: Implications For Competition Policy," Working Papers. Serie AD 2001-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:126501. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.