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Output and R&D subsidies in a mixed oligopoly

Sang-Ho Lee () and Yoshihiro Tomaru ()

MPRA Paper from University Library of Munich, Germany

Abstract: We analyze an oligopoly where public and private firms compete in quantity and R&D. Using general functions, we show that an output subsidy and an R&D tax can achieve the first-best allocation. Moreover, the degree of privatization does not influence the optimal output subsidy but does influence the optimal R&D tax.

Keywords: R&D subsidy; Output subsidy; Mixed oligopoly; Partial privatization (search for similar items in EconPapers)
JEL-codes: H2 L3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-gth, nep-ino and nep-mic
Date: 2017-03-01
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Published in Operations Research Letters 45 (2017): pp. 238-241

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:84410

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