Collusion in a Differentiated Market and Environmental Network Externality


  •  Pasquale Falcone    

Abstract

We analyse the effect of a “green network externality” in a context of consumers’ environmental sensitiveness and competition between firms in both environmental quality and product prices. In particular, we investigate firms ‘aptitude to implicitly collude on prices in a vertically differentiate market. We find that green network effects hamper collusion. We also find that firms collude if they recognize an adequate value in future joint profits.


This work is licensed under a Creative Commons Attribution 4.0 License.
  • ISSN(Print): 1918-7173
  • ISSN(Online): 1918-7181
  • Started: 2009
  • Frequency: quarterly

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