Subsidies in Oligopoly Markets: A Welfare Comparison between Symmetric and Asymmetric Costs
AbstractThis paper studies welfare effects of uniform production subsidies in oligopoly markets, comparing cases of asymmetric and symmnetric costs. Cost asymmetry reduces the impact if the demand function is concave and magnifies the impact if demand is convex.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 70.
Length: 12 pages
Date of creation: Sep 1995
Date of revision:
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Subsidies; oligopoly; cost asymmetry;
Find related papers by JEL classification:
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
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- Hamilton, Stephen F., 1999. "Demand shifts and market structure in free-entry oligopoly equilibria," International Journal of Industrial Organization, Elsevier, vol. 17(2), pages 259-275, February.
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