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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 70:
Subsidies in Oligopoly Markets: A Welfare Comparison between Symmetric and Asymmetric Costs

Stephen F. Hamilton and Rickard Sandin

Abstract: 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.

Keywords: Subsidies; oligopoly; cost asymmetry; (follow links to similar papers)

JEL-Codes: L52; (follow links to similar papers)

12 pages, September 1995

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