Environmental groups in monopolistic markets

Pim Heijnen*, Lambert Schoonbeek

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

11 Citaten (Scopus)
36 Downloads (Pure)


We examine a market in which a monopolistic firm supplies a good. The production of the good causes damage to the environment. Consumers are heterogeneous with respect to their disutility of the environmental damage. An environmental group can enter the market and set up a campaign in order to influence consumers' preferences. We characterize the equilibrium of the resulting entry-deterrence game and investigate its properties. It turns out that the aggregated environmental damage is lowest if the firm is able to deter entry of the environmental group and, moreover, the fixed entry cost of the environmental group is small enough.

Originele taal-2English
Pagina's (van-tot)379-396
Aantal pagina's18
TijdschriftEnvironmental & Resource Economics
Nummer van het tijdschrift4
StatusPublished - apr.-2008

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