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

Marie-Laure Cabon-Dhersin ()
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Marie-Laure Cabon-Dhersin: LERN - Laboratoire d'Economie Rouen Normandie - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université

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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.

Date: 2022
New Economics Papers: this item is included in nep-com, nep-ene, nep-env, nep-gth, nep-ind, nep-int and nep-tre
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Published in Economics Bulletin, 2022, 42 (2), pp.1069-1080

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