Environmental Taxes Could Reshape Competitive Landscape, Benefit Consumers
The article examines how environmental taxes and regulations affect competition between companies in a specific economic setting. It uses a model based on a game theory concept called the Cournot game to explore this relationship in an oligopoly market structure. The researchers found that implementing taxes and regulations can influence the behavior of companies in the market. They also discussed how government regulations can impact the overall structure of the market. Essentially, environmental policies can change the way companies compete with each other and shape the industry's dynamics.