In the presence of negative pollution externalities, it is more efficient to have Cournot competitors than Bertrand competitors.

Question

Quizplus · Accepted Answer

In the presence of negative pollution externalities, neither Cournot nor Bertrand competition inherently leads to more efficiency. Efficiency in addressing pollution externalities typically requires government intervention, such as taxes or regulations, rather than relying on the market structure of competition.

In the Presence of Negative Pollution Externalities, It Is More