Polluting Companies Face Tougher Regulations and Taxes, Boosting Environmental Protection
The article explores how environmental taxes and regulations affect competition among companies that have a lot of power in a market. It looks at a game where these companies make decisions based on what their rivals might do. The researchers make a new model based on this game that includes environmental taxes and regulations set by the government. They find some important insights from this model about how these factors impact competition. Overall, the study delves into ways taxes and rules can influence how companies compete in a market and how the government can shape the playing field.