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Taxe, subvention et coût fixe d’entrée : oligopole de Cournot avec entrée endogène

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  • Bocar Samba Ba

Abstract

?We consider an endogenous two-period Cournot oligopoly where several similar firms extract and sell a polluting resource and pay tax on each unit produced. In the second period, they compete with other similar firms that recycle one part of the previous extracted quantity. These firms must pay a fixed cost to enter the market. After entering, they receive a subsidy from a benevolent regulator, due to recycling being considered a green activity. Our results are as follows: First, the combination of taxation, subsidy, and fixed cost enables the social optimum to be restored. Second, the implementation of these policies may be financially profitable for the regulator, under some conditions. Third, the levels of the taxes, the subsidy, and the fixed cost depend on whether the elasticities of demand are finite numbers or not. ? JEL classification: L13, L72, Q56, Q58.

Suggested Citation

  • Bocar Samba Ba, 2019. "Taxe, subvention et coût fixe d’entrée : oligopole de Cournot avec entrée endogène," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 117-134.
    • Handle: RePEc:cai:reidbu:rei_165_0117
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    Keywords

    tax; subsidy; Cournot oligopoly; endogenous entry; fixed cost;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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