description
Large firms on the European waste management market seem eager to lobby for more stringent environmental regulation and its enforcement, though this raises their costs. Based on data from four large European countries, Sebastiano Brusco, Paolo Bertossi and I propose a game-theory based model to interpret this stance. We argue stringent environmental regulation increases the size of the market, whereas stringent enforcement disposes of the competitive advantage that smaller, less visible firms enjoy when it is more loose. Published as a chapter of a 1995 Edward Elgar book, edited by Francois Leveque.