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Government Policy, Trade under Oligopolistic Competition and Pollution

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Government Policy, Trade under Oligopolistic Competition and Pollution

Jiang, Feng (2017) Government Policy, Trade under Oligopolistic Competition and Pollution. PhD thesis, Concordia University.

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Abstract

This thesis is a study on the strategic interactions between governments and firms under pollution. Governments make environmental policies and put them on their domestic firms. Firms decide their outputs and compete in the international market. Pollution are local or transboundary.
First, we discuss governments’ preference when their firms compete Cournot in the international market. Our results suggest that under local pollution governments tend to apply looser environmental policies on their firms which decrease their production costs. However, these polices become more stringent if governments and firms are under transboundary pollution.
Second, we analyze firms’ payoffs in Stackelberg competition and find that under this case, both governments and firms obtain less payoffs than what they can get when firms compete Cournot. This is different from the results that a firm can get more profits as the leader in Stackelberg model than its profits in Cournot model if there is no intervention from governments.
Finally, we discover governments’ and firms’ payoffs by collusion and compare all the possible choices for governments and firms. Our results shows that in the first stage governments choose collude in making environmental policies and in the second stage firms would collude in deciding their outputs.

Divisions:Concordia University > Faculty of Arts and Science > Economics
Item Type:Thesis (PhD)
Authors:Jiang, Feng
Institution:Concordia University
Degree Name:Ph. D.
Program:Economics
Date:July 2017
Thesis Supervisor(s):Diamantoudi, Effrosyni
ID Code:982718
Deposited By: FENG JIANG
Deposited On:08 Nov 2017 21:32
Last Modified:18 Jan 2018 17:55
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