The authors explore the impact of geographical proximity of environmental problems on environmental concern and willingness to pay (WTP) for environmental improvement, with emphasis on the relevance of Inglehart’s postmaterialism thesis on this inquiry. A questionnaire was administered to 1,565 respondents in Istanbul. The Contingent Valuation Method was used to measure WTP. Sea pollution in Istanbul (local issue), soil erosion in Turkey (national issue), and ozone depletion (global issue) were issues chosen for valuation. The sample was separated into three subsamples, with each being presented with only one issue. Individuals distinguish between local and global environmental concern. People with materialist values rather than postmaterialist values exhibit more concern for local environmental problems. However, postmaterialist values determine WTP for improvement in both the local and the global environmental problems. Distinguishing among concern for environmental issues, which are differentiated on the basis of geographical proximity, has relevance for the ongoing postmaterialist values debate.

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This paper proposes a mechanism for the regulation of duopolies: a revenue contests among the firms. Under the mechanism, the firm with the lower revenue is to pay a penalty to the firm with the higher revenue proportional to the difference between their revenues. In a homogenous good Cournot duopoly with convex cost and demand functions, the mechanism implements the optimal outcome when the firms have symmetric costs. When one firm is more efficient, the mechanism leads to increased social surplus under a large set of parameters.

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