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| Gareth Myles |
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| ''Mixed oligopoly, subsidization and the order of firms' moves: an irrelevance result for the general case'' |
| ( 2002, Vol. 12 No.1 ) |
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| 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 public firm maximizes welfare or profit and moves simultaneously with private firms, or maximizes welfare and acts as a Stackelberg leader. |
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| Keywords: first-best |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
H2 - Taxation, Subsidies, and Revenue: General |
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| Manuscript Received : Nov 30 2001 | | Manuscript Accepted : Jan 16 2002 |
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