Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174615
Authors: 
Batabyal, Amit
Beladi, Hamid
Year of Publication: 
2016
Series/Report no.: 
56th Congress of the European Regional Science Association: "Cities & Regions: Smart, Sustainable, Inclusive?", 23-26 August 2016, Vienna, Austria
Abstract: 
The n total consumers in the market for a particular good are made up of b brown and g green consumers so that b+g=n. The b brown (g green) consumers are not (are) environmentally conscious and hence they prefer to buy a new (remanufactured) good denoted by N and R respectively. By strategically purchasing or not purchasing the N and the R goods, the brown and the green consumers attempt to create a dominant market share for their preferred good. In this setting, we study three issues. First, we delineate the game between the brown and the green consumers in normal form and then solve for the Nash equilibrium when n=2 and b=1. Second, we find all the Nash equilibria of this game between brown and green consumers when n>2 is an even number and b=g=n/2. Finally, we increase the cost of purchasing the new and the remanufactured goods and then study how this increase affects the answers obtained for the above two issues.
Subjects: 
Brown Consumer
Green Consumer
Market Share
New Good
Remanufactured Good
JEL: 
D11
Q20
Document Type: 
Conference Paper

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