The author analyses delegation in homogenous duopoly under the assumption that the firm-managers compete in supply functions. In supply function equilibrium, managers' decisions are strategic complements. This reverses earlier findings in that the author finds that owners give managers...

The efficiency of the Pigouvian tax suggests that price-based regulation is the proper benchmark for efficient regulation. However, results due to Carlton and Loury (1980, 1986) question this; when harm depends on scale effects a pure Pigou tax is inefficient regulation in the long run. In this...

J. T. Dunlop's (1944) work on the monopoly union model emphasizes that the primary role of wages is to distribute industry rents. This paper extends the model to two periods and it is, furthermore, assumed that firms are better informed than workers about the size or quality of capital. This...

In this paper we investigate environmental regulation by taxes and quotas in the context of a monopolistically competitive industry. Firstly, we find the combination of a quota and a tax supporting the first best solution. Secondly, we explain why the allocative equivalence between the two...

Taxes can change product selection bias in markets where set-up or fixed costs play an important role. We demonstrate that the Pigouvian correction for externalities will introduce products in the socially optimal order but too few firms survive. Allowing for firm specific taxes we find the...

One way to integrate environmental concerns into the European agricultural policy is to let the agricultural income support be contingent on the farmer's environmental performance. With asymmetric information concerning relevant parameters like the individual farmer's cost of supplying...

Some results suggest if the economy is competitive is does not matter whether firms are run capitalists or workers. In particular, in the long run labor-managers use the same amount of labor and hire the same amounts of non-labor inputs as a similar capitalists firm. Here we reexamine this issue...