In this paper, we analyze how strategic competition between a green firm and a browncompetitor develops when their products are differentiated along two dimensions: hedonicquality and environmental quality. The former dimension refers to the pure (intrinsic) per-formance of the good, whereas the latter dimension has a positional content: buying greengoods satisfies the consumer’s desire to be portrayed as a socially worthy citizen. We con-sider the case in which these quality dimensions are in conflict with each other so that thehigher the hedonic quality of a good, the lower the corresponding environmental quality.We characterize the equilibrium configurations and discuss the policy implications derivingfrom our analysis.

Mantovani, A., Tarola, O., Vergari, C. (2016). Hedonic and environmental quality: A hybrid model of product differentiation. RESOURCE AND ENERGY ECONOMICS, 45, 99-123 [10.1016/j.reseneeco.2016.06.005].

Hedonic and environmental quality: A hybrid model of product differentiation

MANTOVANI, ANDREA;VERGARI, CECILIA
2016

Abstract

In this paper, we analyze how strategic competition between a green firm and a browncompetitor develops when their products are differentiated along two dimensions: hedonicquality and environmental quality. The former dimension refers to the pure (intrinsic) per-formance of the good, whereas the latter dimension has a positional content: buying greengoods satisfies the consumer’s desire to be portrayed as a socially worthy citizen. We con-sider the case in which these quality dimensions are in conflict with each other so that thehigher the hedonic quality of a good, the lower the corresponding environmental quality.We characterize the equilibrium configurations and discuss the policy implications derivingfrom our analysis.
2016
Mantovani, A., Tarola, O., Vergari, C. (2016). Hedonic and environmental quality: A hybrid model of product differentiation. RESOURCE AND ENERGY ECONOMICS, 45, 99-123 [10.1016/j.reseneeco.2016.06.005].
Mantovani, A.; Tarola, O.; Vergari, C.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/544686
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