It is proved that the irrelevance result of Poyago-Theotoky can be extended from the linear-quadratic case to general inverse demand and cost functions. Hence, as long as firms are profitable at the first-best, the optimal subsidy decentralizes it in mixed oligopoly irrespecitve of whether the...

The combined use of specific and ad valorem taxation as a policy response to the welfare losses caused by international oligopoly is explored. With Nash competition between countries, taxation is inferior to quantity control. In contrast, when countries cooperate production control and taxation...

We analyze the choice between the origin and destination principles of taxation when there is product differentiation and Bertrand competition. If taxes are redistributed to consumers and demand is linear the origin principle dominates the destination principle whatever the degree of product...