Profitable Cost Increases and the Shifting of Taxation : Equilibrium Response of Markets in Oligopoly
AbstractThis paper considers the conjectural variations model of oligopoly and introduces a shift in its equilibrium solution : a cost-side shift, such as a change in technology or input prices, or the introduction of excise tax. The equilibrium effects of this cost-displacement are then found, deriving and examining explicit expressions for the resulting movements in individual outputs and hence in price, profits and market structure. The main motivation we offer for the exercise is methodological : to derive, for the model adopted, certain industrial-organization results of general interest and applicability, which we then put to work mostly in a more specific public finance context. The results we are referring to are, very simply, the comparative statics (of our model) of oligopoly, in response to changes in costs. It is indeed surprising that the problem is not one which has been treated systematically in the literature except for particular cases, such as special functional forms and / or symmetric industry
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 260.
Length: 33 pages
Date of creation: 1985
Date of revision:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).
If references are entirely missing, you can add them using this form.