IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v25y1997i6p660-668.html
   My bibliography  Save this article

Subsidies in Oligopoly Markets: a Welfare Comparison Between Symmetric and Asymmetric Costs

Author

Listed:
  • Stephen F. Hamilton

    (Kansas State University)

  • Rickard Sandin

    (Stockholm School of Economics)

Abstract

This article studies welfare effects of uniform production subsidies in oligopoly markets, comparing cases of symmetric and asymmetric costs. Cost asymmetry reduces the welfare impact relative to the symmetric-cost case if the demand function is concave and magnifies the impact if demand is convex. The welfare difference increases with the degree of market power and with the cost differential in the industry.

Suggested Citation

  • Stephen F. Hamilton & Rickard Sandin, 1997. "Subsidies in Oligopoly Markets: a Welfare Comparison Between Symmetric and Asymmetric Costs," Public Finance Review, , vol. 25(6), pages 660-668, November.
  • Handle: RePEc:sae:pubfin:v:25:y:1997:i:6:p:660-668
    as

    Download full text from publisher

    File URL: http://pfr.sagepub.com/content/25/6/660.abstract
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. repec:eee:quaeco:v:67:y:2018:i:c:p:1-7 is not listed on IDEAS

    More about this item

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:25:y:1997:i:6:p:660-668. See general 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: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.