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

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

Stephen F. Hamilton and Rickard Sandin
Vol.1995(70)
SSE/EFI Working Paper Series in Economics and Finance, 70, Economic Research Institute (EFI)/Stockholm School of Economics (SSE)
1995

Abstract

subsidies oligopoly cost asymmetry L52
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.

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