Subsidies in Oligopoly Markets: A Welfare Comparison between Symmetric and Asymmetric Costs
This paper studies welfare effects of uniform production subsidies in oligopoly markets, comparing cases of asymmetric and symmnetric costs. Cost asymmetry reduces the impact if the demand function is concave and magnifies the impact if demand is convex.
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|Date of creation:||Sep 1995|
|Date of revision:|
|Contact details of provider:|| Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden|
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