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We consider a multimarket framework where a set of firms compete on two interrelated oligopolistic markets. Prior to competing in these markets, firms can spy on others in order to increase the quality of their product. We characterize the equilibrium espionage networks and networks that...
Persistent link: https://www.econbiz.de/10003796413
for entry subsidization. Incentives are changed because entry produces "terms of trade" gains. The optimal entry subsidy … differences in the optimal subsidy for domestic and foreign entrants, with foreign entrants relatively less subsidized. Domestic …
Persistent link: https://www.econbiz.de/10014216987
. Outcomes are compared with an emission fee and a subsidy. The analytical results are simulated with a numerical model and … subsidy. …
Persistent link: https://www.econbiz.de/10011977097
sector) a tax is the dominant instrument. For moderate policy targets, a subsidy will be superior (inferior) if the initial …
Persistent link: https://www.econbiz.de/10011438300
We study the profitability incentives of merger and the endogenous industry structure in a strategic trade policy environment. Merger changes the strategic trade policy equlilibrium. We show that merger can be profitable and welfare enhancing here, even though it would not be profitable in a...
Persistent link: https://www.econbiz.de/10011507913
subsidy allows to achieve maximum efficiency. We show that, while the ownership of the controlled firm is irrelevant when … optimal subsidy to restore the first-best allocation, irrespective of the mode of competition. The paper also focuses on the … extent to which a subsidy is needed to attain the social optimum, highlighting the equivalence between a price (quantity …
Persistent link: https://www.econbiz.de/10011526650
's vehicle market under ABS and conduct counterfactual simulations to evaluate the welfare impacts of various subsidy designs … subsidy redistribution through product-level subsidies, as suggested by our theoretical model, further enhances welfare gains … by an additional 34% to 62%. Among the ABS designs, China's notched subsidy design based on driving range leads to …
Persistent link: https://www.econbiz.de/10014512118
imposing negative value-added taxes (subsidy) or positive specific taxes …
Persistent link: https://www.econbiz.de/10012772273
We develop a 2×2×2 model with the following features: (1) one sector is perfectly competitive while the other is oligopolistic; (2) one country has unemployment while the other attains full employment; (3) oligopolists move internationally; and (4) the ownership of each oligopolist is...
Persistent link: https://www.econbiz.de/10011433989
This paper provides a welfare comparison of a tariff with a combination of a production subsidy to, and a commodity tax … combination of the production subsidy and the commodity tax and show it to be superior to the tariff from the welfare viewpoint …. -- Commodity Tax ; Production Subsidy ; Tariff ; Industry Protection …
Persistent link: https://www.econbiz.de/10009728502