摘要：In this article, we consider firms competing in an imperfectly competitive international market. These firms are not all submitted to a pollution permit market. We show that a dominant firm being part of the pollution permit market can use it to obtain an advantage in the product market. This result enlarges assumptions about exclusionary manipulation. We also show that the government acts strategically as well, using two instruments to increase welfare: the pollution cap and the initial allocation. The resulting pollution cap is higher with respect to the one achieved without strategic behavior.
