Abstract
We characterise the socially optimal mix of firms in a duopoly with both profit-seeking and labour-managed firms. Firms’ activities generate a twofold externality: (i) production entails the exploitation of a common pool natural resource and (ii) production/consumption pollutes the environment. We show that it is always preferable to have at least one labour-managed firm in the industry, in view of its softer impact on environmental magnitudes. Moreover, if market size is large enough, a mixed duopoly is indeed the socially efficient industry configuration.
Keywords: Mixed oligopoly, Pollution, Resource extraction.
Related Books
Capitalist Realism in Africa: Realities and Myths in Advertising
Digital Currency: An International Legal and Regulatory Compliance Guide
Intellectual Property Basic Manual for Researchers in Universities
.jpg)
Internet Economics: Models, Mechanisms and Management
Learning Why and How: A Reader in Managing Nonprofit and Voluntary Organizations
Markets, Business and Sustainability
Organizational Management: Case Studies for Graduate Students
People, Preferences & Prices: Sequencing the Economic Genome of the Consumer Mind
Redefining University Leadership for the 21st Century
Research on Corporate Environmental Responsibility in China