. Under Cournot competition, announcing the subsidy rate seems to be preferable to announcing the tax rate. Moreover, for … constant marginal damage the hold-up problem can always be solved by setting subsidies. Under Bertrand competition, only …

. Under Cournot competition, announcing the subsidy rate seems to be preferable to announcing the tax rate. Moreover, for … constant marginal damage the hold-up problem can always be solved by setting subsidies. Under Bertrand competition, only …

allocations. This leads us to consider competitive forces as a disciplinary device for households. Competition of households for …

inefficient household decisions on market performance is investigated. At one extreme, market efficiency can occur even when … market. At the other extreme, market efficiency is bound to fail, if household inefficiencies are solely caused by an … stability requires efficient or not too inefficient internal distribution. -- allocative efficiency ; general equilibrium …

In this paper we study how promoting product market competition by reducing mark-ups or by increasing productivity are …