Environmental groups in monopolistic markets
研究了垄断企业生产污染环境时，环保组织通过影响消费者偏好来进入市场，分析了企业阻止环保组织进入的博弈均衡及其对环境损害的影响。
We examine a market in which a monopolistic firm supplies a good. The production of the good causes damage to the environment. Consumers are heterogeneous with respect to their disutility of the environmental damage. An environmental group can enter the market and set up a campaign in order to influence consumers’ preferences. We characterize the equilibrium of the resulting entry-deterrence game and investigate its properties. It turns out that the aggregated environmental damage is lowest if the firm is able to deter entry of the environmental group and, moreover, the fixed entry cost of the environmental group is small enough.