Consumer discrimination, duopoly, and black firm entry: The welfare effect of subsidies
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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Volume (Year): 23 (1995)
Issue (Month): 4 (June)
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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.
- Fishman, Arthur & Gandal, Neil, 1994.
"Experimentation and learning with networks effects,"
Elsevier, vol. 44(1-2), pages 103-108.
- Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
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