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Cournot vs. Bertrand competition in the international transport market with environmental standard

Author

Listed:
  • Marie-Laure Cabon-Dhersin

    (Université Rouen Normandie)

Abstract

We revisit the classic comparison of Bertrand and Cournot competition by studying how the form of competition between shipping companies affects transport prices, international trade, consumer and producer surplus, and social welfare in two countries that coordinate their environmental policies. We show that the standard Bertrand-Cournot ranking only prevails when pollution abatement technologies are sufficiently efficient.

Suggested Citation

  • Marie-Laure Cabon-Dhersin, 2022. "Cournot vs. Bertrand competition in the international transport market with environmental standard," Economics Bulletin, AccessEcon, vol. 42(2), pages 1069-1080.
    • Handle: RePEc:ebl:ecbull:eb-22-00072
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    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I2-P91.pdf
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    More about this item

    Keywords

    Cournot competition; Bertrand competition; environmental standards; international transportation; trade;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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