Location equilibria in a mixed duopsony with a cooperative

This work analyses a two‐stage price–location game between a profit maximising firm and a primary producers' cooperative. According to the results, the location equilibria are not fixed but depend on the intrinsic competitiveness of the spatial market. As the intrinsic competitiveness rises, the cooperative tends to be located closer to the middle point of the market. The limited differentiation in location entails an efficiency loss which is nevertheless smaller than that associated with the competition of two profit maximising firms (pure duopsony) on exactly the same spatial market. The superiority of a mixed duopsony lies in the fact that the resulting equilibrium locations entail lower total transportation cost relative to those of a pure duopsony.     

Welfare Ranking of Environmental Policies in the Presence of Capital Mobility and Cross‐Border Pollution

We construct a model of two regions with cross‐border pollution, and with inter‐regional (regional capital mobility [RCM]) or international (international capital mobility [ICM]) capital mobility. Each region uses emission taxes, or intra‐regionally, or inter‐regionally tradable emission permits to reduce pollution. We show that the non‐cooperative settings of all three instruments are always inefficient relative to their cooperative settings. When regions are symmetric, then (i) with RCM the non‐cooperative setting of intra‐regionally tradable emissions permits is welfare superior to that of the other two instruments, (ii) with ICM the non‐cooperative settings of intra‐regionally tradable emission permits and of emission taxes are equivalent and superior to that of inter‐regionally tradable emission permits, and (iii) with ICM the three instruments are equivalent only when cross‐border pollution is perfect.     

Tax competition in the presence of environmental spillovers

International Tax and Public Finance - This paper examines the efficiency of destination-and origin-based consumption taxes, in the presence of consumption generated perfect cross-border pollution...