Departmental Bulletin Paper Regulation of Non-point Source Pollution under n-…firm Bertrand Competition

石川 利治  ,  松本 昭夫  ,  Ferenc  SZIDAROVSZKY

 This study demonstrates the conditions under which an increase in the ambient charge positively or negatively affects the total level of non-point source pollutions. For this purpose, an n-fi…rm Bertrand framework is used in which goods are differentiated and the corresponding price functions are linear. It is shown …first that the effect is defi…nitely negative in duopoly and triopoly and second that, for n≥4, the sign of the effect depends on the number of the fi…rms involved and the degree of substitutability.

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