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Environmental Technological Choice in a Cournot-Bertrand Model

Author

Listed:
  • Elias Asproudis

    (University of Swansea)

  • Eleftherios Filippiadis

    (University of Macedonia)

Abstract

This paper investigates the abatement technology choice in Cournot-Bertrand, as well as in pure Cournot and Bertrand duopolies. It is argued that, under certain conditions, the Bertrand firm will choose a “dirtier” technology compared to its Cournot rival. Furthermore, when competing in quantities, firms choose greener technologies than when competing in prices. This is because higher abatement rates make a firm choosing quantity relatively more aggressive than a firm choosing price, irrespective of the strategic variable of its rival. Moreover, it is shown that the introduction of abatement technologies will increase total output in the market and decrease total emissions.

Suggested Citation

  • Elias Asproudis & Eleftherios Filippiadis, 2021. "Environmental Technological Choice in a Cournot-Bertrand Model," Journal of Industry, Competition and Trade, Springer, vol. 21(1), pages 43-58, March.
    • Handle: RePEc:kap:jincot:v:21:y:2021:i:1:d:10.1007_s10842-020-00339-z
    DOI: 10.1007/s10842-020-00339-z
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    References listed on IDEAS

    as
    1. Asproudis, Elias & Gil-Moltó, Maria José, 2014. "Pollution and Environmentalists' Participation in Emissions Trading Systems," Strategic Behavior and the Environment, now publishers, vol. 4(1), pages 59-87, April.
    2. Olga Rozanova, 2017. "Wholesale Prices And Cournot-Bertrand Competition," Bulletin of Economic Research, Wiley Blackwell, vol. 69(4), pages 12-18, October.
    3. Manasakis, Constantine & Vlassis, Minas, 2014. "Downstream mode of competition with upstream market power," Research in Economics, Elsevier, vol. 68(1), pages 84-93.
    4. Victor J. Tremblay & Carol Horton Tremblay & Kosin Isariyawongse, 2013. "Endogenous Timing And Strategic Choice: The Cournot-Bertrand Model," Bulletin of Economic Research, Wiley Blackwell, vol. 65(4), pages 332-342, October.
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    8. Ray-Yun Chang & Yan-Shu Lin & Jin-Li Hu, 2015. "Mixed Competition and Patent Licensing," Australian Economic Papers, Wiley Blackwell, vol. 54(4), pages 229-249, December.
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    11. Elias Asproudis & Maria Gil-Moltó, 2015. "Green Trade Unions: Structure, Wages and Environmental Technology," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(2), pages 165-189, February.
    12. Arya, Anil & Mittendorf, Brian & Sappington, David E.M., 2008. "Outsourcing, vertical integration, and price vs. quantity competition," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 1-16, January.
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    Cited by:

    1. Michael Kopel & Eva Maria Putz, 2021. "Information sharing in a Cournot–Bertrand duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1645-1655, October.
    2. Asproudis, Elias & Filippiadis, Eleftherios & Tian, Mo, 2022. "Timing of environmental technological choice and trade unions' climate solidarity," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    3. Liu, Shihua & Padhan, Hemachandra & P., Jithin & Jose, Annmary & Rahut, Dil, 2024. "Do green trade and technology-oriented trade affect economic cycles? Evidence from the Chinese provinces," Technological Forecasting and Social Change, Elsevier, vol. 202(C).

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    More about this item

    Keywords

    Oligopoly theory; Environment; Technological choice; Competition; Cournot-Bertrand;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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