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

Marie-Laure Cabon-Dhersin ()
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Marie-Laure Cabon-Dhersin: Université Rouen Normandie

Economics Bulletin, 2022, vol. 42, issue 2, 1069 - 1080

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.

Keywords: Cournot competition; Bertrand competition; environmental standards; international transportation; trade (search for similar items in EconPapers)
JEL-codes: L1 Q5 (search for similar items in EconPapers)
Date: 2022-06-30
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