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Consumer Discrimination, Duopoly, and Black Firm Entry: The Welfare Effect of Subsidies

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Author Info
Gregory N. Price (North Carolina A&T State University, Greensboro, NC.)

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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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Publisher Info
Paper provided by EconWPA in its series Industrial Organization with number 9505001.

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Length: 9 pages
Date of creation: 16 May 1995
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Handle: RePEc:wpa:wuwpio:9505001

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L - Industrial Organization

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Arthur Fishman & Neil Gandal, 1993. "Experimentation and Learning with Network Effects," Industrial Organization 9309001, EconWPA. [Downloadable!]
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  2. Varian, Hal R., 1995. "Entry and cost reduction," Japan and the World Economy, Elsevier, vol. 7(4), pages 399-410, November. [Downloadable!] (restricted)
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