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Consumer discrimination, duopoly, and black firm entry: The welfare effect of subsidies

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  • Gregory Price

Abstract

Consumer discrimination, to the extent that it discourages the entry of Black-owned firms may be welfare reducing, as market output is lower than otherwise. This paper offers a simple model of duopoly in which conditions are derived for which a profit subsidy to Black-owned firms increases, decreases, or has no effect on social welfare.

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File URL: http://hdl.handle.net/10.1007/BF02689912
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Bibliographic Info

Article provided by Springer in its journal The Review of Black Political Economy.

Volume (Year): 23 (1995)
Issue (Month): 4 (June)
Pages: 69-76

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Handle: RePEc:spr:blkpoe:v:23:y:1995:i:4:p:69-76

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  1. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, April.
  2. Arthur Fishman & Neil Gandal, 1993. "Experimentation and Learning with Network Effects," Industrial Organization 9309001, EconWPA.
  3. Varian, Hal R., 1995. "Entry and cost reduction," Japan and the World Economy, Elsevier, vol. 7(4), pages 399-410, November.
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