| Article ID: | iaor20053151 |
| Country: | United States |
| Volume: | 7 |
| Issue: | 1 |
| Start Page Number: | 85 |
| End Page Number: | 88 |
| Publication Date: | Dec 2005 |
| Journal: | Manufacturing & Service Operations Management |
| Authors: | Subramanian R. |
| Keywords: | bidding |
This is an extended abstract of a paper that was a finalist in the Manufacturing and Service Operations Management Society's 2004 Student Paper Competition. A model is presented of a three-stage game in an oligopoly where firms invest in abatement to reduce emissions, participate in a ‘share’ auction for permits, produce output and, hence, generate emissions in proportion to output produced.