Product Greening, Competition and Cooperation under Environmental Regulations

Abstract

In this paper we explore the e ect of environmental regulations and costs of greening on rms. Our problem deals with the case of a single rm, a duopoly and the case of cooperation between them. We use these market settings to study the pricing and greening decision of players under environmental regulations and increasing costs. We also analyze their impact on consumers. Further, we explore several contracts between the players under competition. Through this problem we address the burgeoning challenges that rms face in the presence of competition and environmental regulations. This research lays the platform for future work in the area of `green' product pricing, environmental contract design mechanisms and study of impact of environmental regulations on rms and supply chains.