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- W2034785250 abstract "Abstract We investigate the bearings product market collusion on the abatement of polluting emissions in a Cournot oligopoly where production entails a negative environmental externality. We model the problem as a differential game and investigate the feedback solution of two alternative settings: a fully noncooperative oligopoly and a cartel maximising the discounted profits of all firms in the industry. Our analysis proves that the output reduction entailed by collusive behaviour may have a beneficial effect on steady state welfare, as a result of the balance between a higher market price and a lower amount of polluting emissions. This result opens a new perspective on the debate about the management of environmental externalities, which so far has mainly focussed on the design of Pigouvian taxation." @default.
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- W2034785250 date "2008-01-01" @default.
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- W2034785250 title "COLLUSION HELPS ABATE ENVIRONMENTAL EXTERNALITIES: A DYNAMIC APPROACH" @default.
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- W2034785250 doi "https://doi.org/10.3182/20080706-5-kr-1001.00717" @default.
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