Toward a theoretical model of voluntary overcompliance

摘要: Abstract We explain why some firms voluntarily overcomply with environmental regulation. In our model all consumers value quality but differ in their willingness to pay which depends on income levels. Publicly available information performance of enables identify clean firms. Firms participate a two-stage duopoly game where they first choose levels cleaning technology and next engage price competition. The market gets segmented by A minimum standard binding the dirty firm has effect improving cleaner firm. subsidy obtains same competitive outcome.