caa a22 4500 44585541X CHVBK 20180317145426.0 cr unu---uuuuu 170323e20111001xx s 000 0 eng 10.1007/s10640-011-9471-0 doi (NATIONALLICENCE)springer-10.1007/s10640-011-9471-0 Market Inertia and the Introduction of Green Products: Can Strategic Effects Justify the Porter Hypothesis? [Elektronische Daten] [Christos Constantatos, Markus Herrmann] If, according to Porter's hypothesis, a "greener” strategy is more profitable, why may its implementation need regulatory intervention? We present a repeated Cournot duopoly where the market may exhibit inertia towards the adoption of even cost-efficient environmental goods. With consumers recognizing that a product is green only with a time lag, if a firm unilaterally adopts the green product initially loses profit due to (a) increased costs (direct effect) and (b) reduced market share (strategic effect). By imposing simultaneous adoption, regulation eliminates (b), thus enhancing long-run profitability. Through a similar mechanism a government can increase its domestic firms' international market share and profits by forcing them to simultaneously adopt the green product. Springer Science+Business Media B.V., 2011 Porter hypothesis nationallicence Environmental regulation nationallicence Differentiated products nationallicence Coordination nationallicence Constantatos Christos Department of Economics, University of Macedonia, Thessaloniki, Greece aut Herrmann Markus Groupe de recherche en économie de l'énergie, de l'environnement et des ressources naturelles (GREEN), Université Laval, Pavillon DeSève, 1025, av. des Sciences-Humaines, G1V 0A6, Québec, QC, Canada aut Environmental and Resource Economics Springer Netherlands 50/2(2011-10-01), 267-284 0924-6460 50:2<267 2011 50 10640 https://doi.org/10.1007/s10640-011-9471-0 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10640-011-9471-0 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Constantatos Christos Department of Economics, University of Macedonia, Thessaloniki, Greece aut NATIONALLICENCE 700 1- Herrmann Markus Groupe de recherche en économie de l'énergie, de l'environnement et des ressources naturelles (GREEN), Université Laval, Pavillon DeSève, 1025, av. des Sciences-Humaines, G1V 0A6, Québec, QC, Canada aut NATIONALLICENCE 773 0- Environmental and Resource Economics Springer Netherlands 50/2(2011-10-01), 267-284 0924-6460 50:2<267 2011 50 10640 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer