Consumer Discrimination, Duopoly, and Black Firm Entry: The Welfare Effect of Subsidies

Gregory Price ()

Industrial Organization from EconWPA

Abstract: Consumer discrimination, to the extent that it discourages the entry of Black-owned firms may be welfare reducing, as market output is lower than otherwise. This paper offers a simple model of duopoly in which conditions are derived for which a profit subsidy to Black-owned firms increases, decreases, or has no effect on social welfare.

JEL-codes: L (search for similar items in EconPapers)
Date: 1995-05-16
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Related works:
Journal Article: Consumer discrimination, duopoly, and black firm entry: The welfare effect of subsidies (1995)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpio:9505001

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