We study two-port-competition game and its extensions. We show the delicate relationship between start-up quality and equilibrium profile both in one-short game and two-period game. Critical value q∗ and q′ is defined to category different scenario where different equilibrium is achieved. We also study the leader-follower game where one port can move first and interpret the physical meaning of ...

This paper offers new support for the Porter Hypothesis within the context of a quality competition framework. We use a duopoly model of vertical product differentiation in which two firms simultaneously choose to produce either a high (environmentally friendly) quality or low (standard) quality variant of a good, before engaging in price competition. In this simple setting, we show that a Nash...