Subsidies in Oligopoly Markets: A Welfare Comparison between Symmetric and Asymmetric Costs

Stephen Hamilton and Rickard Sandin
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Rickard Sandin: Dept. of Economics, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden

No 70, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

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 (search for similar items in EconPapers)
JEL-codes: L52 (search for similar items in EconPapers)
Pages: 12 pages
Date: 1995-09
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Subsidies in Oligopoly Markets: a Welfare Comparison Between Symmetric and Asymmetric Costs (1997)
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