TEL  Vol.4 No.2 , March 2014
Price and Quantity Competition in a Mixed Duopoly with Emission Tax
Author(s) Shuichi Ohori
ABSTRACT

This paper compares price and quantity competition in a mixed duopoly with emission tax; in a mixed duopoly, one public firm competes with one private firm in the market. We find that social welfare is the highest when both the firms simultaneously choose price levels. Then, the optimal emission tax is sufficiently lower than the marginal social damage.


Cite this paper
Ohori, S. (2014) Price and Quantity Competition in a Mixed Duopoly with Emission Tax. Theoretical Economics Letters, 4, 133-138. doi: 10.4236/tel.2014.42020.
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