Cournot vs. Bertrand competition in the international transport market with environmental standards

Marie-Laure Cabon-Dhersin (1)

1 LERN - Laboratoire d'Economie Rouen Normandie

We revisit the classic comparison of Bertrand and Cournot competition by studying how the form of competition between shipping companies affects transport prices, international trade, consumer and producer surplus, and social welfare in two countries that coordinate their environmental policies. We show that the standard Bertrand-Cournot ranking only prevails when pollution abatement technologies are sufficiently efficient.

Domaines: Économie et finance quantitative [q-fin]

Marie-Laure Cabon-Dhersin. Cournot vs. Bertrand competition in the international transport market with environmental standards. Economics Bulletin, In press. ⟨hal-03822627⟩