Consumer Discrimination, Duopoly, and Black Firm Entry: The Welfare Effect of Subsidies
AbstractConsumer 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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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 9505001.
Length: 9 pages
Date of creation: 16 May 1995
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Other versions of this item:
- Gregory Price, 1995. "Consumer discrimination, duopoly, and black firm entry: The welfare effect of subsidies," The Review of Black Political Economy, Springer, vol. 23(4), pages 69-76, June.
- L - Industrial Organization
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- Varian, Hal R., 1995. "Entry and cost reduction," Japan and the World Economy, Elsevier, vol. 7(4), pages 399-410, November.
- Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, March.
- Fishman, Arthur & Gandal, Neil, 1994.
"Experimentation and learning with networks effects,"
Elsevier, vol. 44(1-2), pages 103-108.
- Gregory Price, 2005. "Consumer discrimination and black firm entry deterrence: Some reparable damage estimates," The Review of Black Political Economy, Springer, vol. 32(3), pages 121-140, March.
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