Price and Quantity Competition in a Mixed Duopoly with Emission Tax

Ohori, Shuichi

doi:10.4236/tel.2014.42020

Cited by 20 publications

(12 citation statements)

References 9 publications

(21 reference statements)

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“…of the profits of the foreign private firm (Fernandez-Ruiz [3]). Furthermore, our paper focuses on the managerial aspect of the firms.…”

Section: The Modelmentioning

confidence: 99%

“…In this case, there is a manager at each firm. In the third stage, the public firm's manager and the foreign private firm's manager choose the output that maximizes respectively (4) and (3). Solving these problems, we obtain: λ that maximizes respectively (1) and (2).…”

Section: Both Firms Hire Managers (Dd)mentioning

confidence: 99%

“…There are numerous papers that analyze the interaction between public and private firms. However, most of these papers suppose that the private firm is either totally owned by domestic investors (De Fraja et Delbono [1]; Matsumura [2]; Ohori [3]), either totally owned by foreign investors (Fjell and Pal [4]). In this paper, we consider the intermediate situations between the cases of full domestic ownership of the private firm and full foreign ownership of the private firm.…”

Section: Introductionmentioning

confidence: 99%

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Endogenous Choice of Managerial Incentives in a Mixed Duopoly with a Foreign Private Firm

Ouattara¹

2016

TEL

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This paper studies the endogenous choice of managerial incentives in a mixed duopoly where a public firm competes with a foreign private firm. The foreign firm is partly owned by domestic investors and the firm's owners have the option to hire a manager. We focus on a new incentive scheme of public firm's managers that is a linear combination of social welfare and sales revenue. In equilibrium we find that when the weight attached to the foreign firm's profits in social welfare is high enough, only the public firm hires a manager. This is in contrast with the classical sales delegation contract used in existing literature.

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“…of the profits of the foreign private firm (Fernandez-Ruiz [3]). Furthermore, our paper focuses on the managerial aspect of the firms.…”

Section: The Modelmentioning

confidence: 99%

Section: Both Firms Hire Managers (Dd)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Endogenous Choice of Managerial Incentives in a Mixed Duopoly with a Foreign Private Firm

Ouattara¹

2016

TEL

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“…In general, the literature provided numerous perspectives on sustainable energy and ECSR. However these studies are mainly concerned the impacts of firm behavior on environment regulations in a mixed oligopoly [20,21]. Nowadays, with the rapid development of economy, the ecological environment is deteriorating, and a sustainable development calls for the innovation of green technology [22].…”

Section: Introductionmentioning

confidence: 99%

Strategic Corporate Social Responsibility, Sustainable Growth, and Energy Policy in China

Hong

Chao

2018

Energies

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China’s economy steps into the “new normal” phase, as it is growing in an innovation-driven instead of a factor-driven mode. In this paper, we constructed the corporate behavioral decision models in different scenarios of policy and analyzed the effect of energy policies on corporate behavior and societal welfare, in a duopoly market. The following conclusions were derived. (1) In a duopoly, the product pricing is irrelevant to the resource cost in their production process. (2) For the firm undertaking the social responsibility, the energy tax imposed by the government would increase either the production or the profit, but decrease the consumer surplus. In contrast, for the other firms, the energy tax rate is opposite to their profit. (3) Low-energy-consuming products will promote efficiency, which reduces either the price or the marginal cost, resulting in a more conspicuous cost advantage to the firm adopting the ecological innovation. (4) The marginal cost for a low-energy-consuming technology research and development steadily decreases, which turns their short-term financial disadvantages into the long-term competitive advantages. The marginal contribution of this paper was to build a simultaneously moving model, in duopoly market, and provide theoretical evidence to endogenize the firm strategy to undertake social responsibilities and to realize sustainable growth.

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“…Subsequent papers have demonstrated that the rankings of quantities, prices, profits, and welfare are sensitive to assumptions on the number of firms and symmetry of cost and demand parameters (e.g., Häckner, 2000;Zanchettin, 2006). More recently, a number of papers have turned to mixed duopoly where a public, welfare-maximizing firm competes against a private, profit-maximizing firm (e.g., Ghosh and Mitra, 2010;Scrimitore, 2011Scrimitore, , 2013Choi, 2012aChoi, , 2012bMatsumura and Ogawa, 2012;Andree, 2013;Chirco et al, 2013;Nakamura, 2013;Ohori, 2013). Taken together, the papers of Matsumura and Ogawa (2012) and Ghosh and Mitra (2010) provide a (partial) characterization of the effect on the market variables and profits.…”

Section: Introductionmentioning

confidence: 99%

Price and Quantity Contracts in a Mixed Duopoly with a Socially Concerned Firm

Kopel

2014

Manage Decis Econ

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I study the endogenous choice of a price or quantity contract in a mixed duopoly with a socially concerned firm, which maximizes a combination of profit and consumer welfare. Equilibria with price and quantity contracts might co‐exist; welfare under price competition might be lower than under quantity competition; the firms' profit ranking might be different from that of a private duopoly or mixed duopoly with a public firm. Hence, if a firm follows a social strategy, the optimal market strategy crucially depends on the levels of social concern and competition in the market. The presence of socially concerned firms may change the mode of competition. Copyright © 2014 John Wiley & Sons, Ltd.

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Price and Quantity Competition in a Mixed Duopoly with Emission Tax

Cited by 20 publications

References 9 publications

Endogenous Choice of Managerial Incentives in a Mixed Duopoly with a Foreign Private Firm

Endogenous Choice of Managerial Incentives in a Mixed Duopoly with a Foreign Private Firm

Strategic Corporate Social Responsibility, Sustainable Growth, and Energy Policy in China

Price and Quantity Contracts in a Mixed Duopoly with a Socially Concerned Firm

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