Let ASSESS
i and REQUIRE
i be facility i’s netbenefitsfromassessingtheenvironmentalperformanceofitssuppliersand
from requiringitssupplierstoundertakeenvironmentalmeasures,respectively.Theyareassumedtodependontheadoption
of ISO14001aswellasasetofcontrolvariables.Specifically,weassumethat