Oligopoly meets oligopsony: The case of permits.

This paper derives market equilibria (in demand functions and in bidding strategies) between oligopolists and oligopsonists in a market with intermediates and no competition in final markets. To the best of my knowledge, this theme has not been explored, despite two observations: Firstly, the common...

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Detalles Bibliográficos
Publicado en:Journal of Environmental Economics & Management Vol. 58; no. 3; pp. 329 - 338
Autor principal: Wirl, Franz
Formato: Artículo
Publicado: Academic Press Inc. November 2009
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      pub: Academic Press Inc.
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        atl: Oligopoly meets oligopsony: The case of permits.
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        au: Wirl, Franz
      su:
        Emissions trading
        Oligopolies
        Mathematical models
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          Emissions trading
          Oligopolies
          Mathematical models
      keyword: Oligopsonies -- Mathematical models
      ab: This paper derives market equilibria (in demand functions and in bidding strategies) between oligopolists and oligopsonists in a market with intermediates and no competition in final markets. To the best of my knowledge, this theme has not been explored, despite two observations: Firstly, the commonly applied framework of non-competitive and competitive fringe firms has implausible properties for the limit of purely strategic players. Secondly, real world cases correspond at least potentially to such strategic interactions, e.g., non-competitive players selling and buying permits (CO2 and SO2). The major implications are that these non-competitive markets are characterized by a kind of double marginalization (on the demand and the supply side) resulting in too little trade and wrong price signals. Copyright (c) 2009 Elsevier Inc.
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