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Optimal Fiscal Regime in a Spatial Duopoly

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  • L. Lambertini

Abstract

Extending the analysis carried out in Lambertini (1993), we investigate a horizontally differentiated duopoly in which a public authority can either tax or subsidize firms, in order to induce duopolists to choose the socially optimal locations.

Suggested Citation

  • L. Lambertini, 1994. "Optimal Fiscal Regime in a Spatial Duopoly," Working Papers 205, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:205
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    15. Ralph M. Braid, 1987. "The Spatial Incidence of Local Retail Taxation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(4), pages 881-891.
    16. Besley, Timothy & Suzumura, Kotaro, 1992. "Taxation and Welfare in an Oligopoly with Strategic Commitment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(2), pages 413-431, May.
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    19. Myles, G. D., 1987. "Tax design in the presence of imperfect competition : An example," Journal of Public Economics, Elsevier, vol. 34(3), pages 367-378, December.
    20. Stern, Nicholas, 1987. "The effects of taxation, price control and government contracts in oligopoly and monopolistic competition," Journal of Public Economics, Elsevier, vol. 32(2), pages 133-158, March.
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    Cited by:

    1. Bertuzzi, Giorgia & Lambertini, Luca, 2010. "Existence of equilibrium in a differential game of spatial competition with advertising," Regional Science and Urban Economics, Elsevier, vol. 40(2-3), pages 155-160, May.
    2. Luca Lambertini, 2007. "Platform stickiness in a spatial voting model," Economics Bulletin, AccessEcon, vol. 4(40), pages 1-11.
    3. Dunkerley Fay & Andre de Palma & Proost Stef, 2005. "Asymmetric Duopoly in Space - what policies work?," Energy, Transport and Environment Working Papers Series ete0509, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    4. Chen, Chin-Sheng & Lai, Fu-Chuan, 2008. "Location choice and optimal zoning under Cournot competition," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 119-126, March.
    5. Chia-Hung Sun, 2013. "A Duality Between Cost-Reducing R&D versus Quality-Improving R&D and Welfare Analysis in a Hotelling Model," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(2), pages 133-148, June.
    6. L. Lambertini, 2010. "Oligopoly with Hyperbolic Demand: A Differential Game Approach," Journal of Optimization Theory and Applications, Springer, vol. 145(1), pages 108-119, April.
    7. Fay Dunkerley & Andre De Palma & Stef Proost, 2009. "Spatial Asymmetric Duopoly With An Application To Brussels' Airports," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 529-553, August.
    8. Wen-Chung Guo & Fu-Chuan Lai, 2015. "Spatial Cournot competition in a linear–circular market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 819-834, May.
    9. Hiroki Kishihara & Nobuo Matsubayashi, 2020. "Product Repositioning in a Horizontally Differentiated Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(3), pages 701-718, November.
    10. repec:ebl:ecbull:v:4:y:2007:i:40:p:1-11 is not listed on IDEAS
    11. Hamid Hamoudi & Carmen Avilés-Palacios, 2022. "Awareness Campaigns in a Horizontally Differentiated Market with Environmentally Conscious Consumers, Private Versus Public Duopoly," IJERPH, MDPI, vol. 19(19), pages 1-21, October.
    12. Shogo Kurokawa & Nobuo Matsubayashi, 2018. "Price and quality competition with quality positions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 71-81, March.
    13. João Correia-da-Silva & Joana Pinho, 2011. "Costly horizontal differentiation," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 10(3), pages 165-188, December.
    14. Jyh-Fa Tsai & Shin-Kun Peng & Fu-Chuan Lai, 2006. "Spatial duopoly with zoning," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(3), pages 515-530, August.
    15. Hong-Ren Din & Chia-Hung Sun, 2023. "Centralized or decentralized bargaining in a vertically-related market with endogenous price/quantity choices," Journal of Economics, Springer, vol. 138(1), pages 73-94, January.
    16. Guo, Wen-Chung & Lai, Fu-Chuan & Zeng, Dao-Zhi, 2015. "A Hotelling model with production," Mathematical Social Sciences, Elsevier, vol. 73(C), pages 40-49.
    17. Lai, Fu-Chuan & Tsai, Jyh-Fa, 2004. "Duopoly locations and optimal zoning in a small open city," Journal of Urban Economics, Elsevier, vol. 55(3), pages 614-626, May.

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