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Cost Manipulation in an Asymmetric Oligopoly: The Taxation Problem

Author

Listed:
  • Van Long, N.
  • Soubeyran, A.

Abstract

This paper analyzes the problem of altering the cost structure within an oligopoly, in the presence of costs of manipulation. Oligopolistic firms (which differ from each other in production costs) compete a la Cournot in the second stage, taking as given firm-specific taxes or input prices. In the first stage, a government, or a regulatory agency, or a mnopolistic input supplier, sets firm-specific taxes, charges, or input prices, to manipulate the cost structure of its agents, in order to maximize some objective function.

Suggested Citation

  • Van Long, N. & Soubeyran, A., 1997. "Cost Manipulation in an Asymmetric Oligopoly: The Taxation Problem," ASSET - Instituto De Economia Publica 173, ASSET (Association of Southern European Economic Theorists).
    • Handle: RePEc:fth:inecpu:173
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    Citations

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    Cited by:

    1. Ngo Van Long & Antoine Soubeyran, 2001. "Emission Taxes and Standards for an Asymmetric Oligopoly," CIRANO Working Papers 2001s-07, CIRANO.
    2. Ngo Van Long & Antoine Soubeyran, 1999. "Input Price Discrimination, Access Pricing, and Bypass," CIRANO Working Papers 99s-23, CIRANO.
    3. Ngo Van Long & Antoine Soubeyran, 2000. "Permis de pollution et oligopole asymétrique," Économie et Prévision, Programme National Persée, vol. 143(2), pages 83-89.
    4. Ngo Van Long & Antoine Soubeyran, 2003. "A Theory of Favoritism under International Oligopoly," CIRANO Working Papers 2003s-15, CIRANO.
    5. Ngo Van Long & Antoine Soubeyran, 1998. "Collusive Allocation of Tradeable Pollution Permits," CIRANO Working Papers 98s-31, CIRANO.
    6. Pedro P. Barros & Tore Nilssen, 1999. "Industrial Policy and Firm Heterogeneity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(4), pages 597-616, December.
    7. Long, Ngo Van & Soubeyran, Antoine, 2001. "Cost Manipulation Games in Oligopoly, with Costs of Manipulating," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(2), pages 505-533, May.
    8. Ngo Van Long & Antoine Soubeyran, 2003. "Favoritism in Vertical Relationship: Input Prices and Access Quality," CIRANO Working Papers 2003s-14, CIRANO.
    9. Ngo Van Long & Antoine Soubeyran & Ngo Van Long & Antoine Soubeyran, 1999. "Pollution, Pigouvian taxes and asymmetric international oligopoly," Chapters, in: Emmanuel Petrakis & Eftichios S. Sartzetakis & Anastasios Xepapadeas (ed.), Environmental Regulation and Market Power, chapter 9, pages 175-194, Edward Elgar Publishing.
    10. Ngo Long & Antoine Soubeyran, 2005. "Selective penalization of polluters: an inf-convolution approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 25(2), pages 421-454, February.
    11. SOUBEYRAN, Antoine & WEBER, Shlomo, 2001. "District formation: a co-opetition approach," LIDAM Discussion Papers CORE 2001016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

    More about this item

    Keywords

    OLIGOPOLIES ; COSTS ; GAMES ; TAXATION;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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