摘要：This paper provides an
additional reason why a win-win situation may emerge within the context of a quality-competition
framework. We consider a duopoly model
of vertical product differentiation, where single product firms decide
whether to supply a high or low quality good (qi)as
discrete variable, and then, compete in price à la Bertrand. In this
simple setting, we found that the framework of this game can ensue in a
typical prisoner’s dilemma as a meaning that, in absence of an environmental
policy, both firms choose the low environmental quality of the product although
they might be better off shifting together toward the environmentally friendly
product. Under this circumstance, an environmental policy (e.g. environmental
standards) can improve the environmental quality while simultaneously enhancing
firms’ economic performance.
