SSE/EFI Working Paper Series in Economics and Finance
Stephen F. Hamilton and Rickard Sandin
Subsidies in Oligopoly Markets: A Welfare Comparison between Symmetric and Asymmetric Costs
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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