Market and Welfare Effects of Big Box Retail Entry in a Linear City Model with Oligopolistic Competition

Author(s):  
Rasha Ahmed ◽  
Mark Stater ◽  
Michael S. Visser
2012 ◽  
Vol 17 (4) ◽  
pp. 461-477 ◽  
Author(s):  
Ana Espínola-Arredondo ◽  
Huan Zhao

AbstractThis paper analyzes how a tax/subsidy policy affects consumers' behavior when choosing between green (pollution-free goods) and conventional products, and its effects on welfare when a proportion of consumers have strong preferences for green goods. We analyze a Hotelling's linear city model where final products by two firms are symmetric in all dimensions except for the externality their production process generates. Our efficiency comparisons suggest that, under a setting of horizontal product differentiation, an environmental regulation (either on polluting firms or consumers buying their products) yields higher social welfare than the absence of policy. Moreover, the proportion of consumers who prefer green products affects the welfare gains from a subsidy or tax policy.


PLoS ONE ◽  
2015 ◽  
Vol 10 (6) ◽  
pp. e0129068
Author(s):  
Ofer H. Azar
Keyword(s):  

2019 ◽  
Author(s):  
Xavier Stephane Decoster ◽  
Gabriel Lara Ibarra ◽  
Vibhuti Mendiratta ◽  
Marco Santacroce

Author(s):  
Daniel K. N. Johnson ◽  
Kristina M. Lybecker ◽  
Nicole Gurley ◽  
Alex Stiller-Shulman ◽  
Stephen Fischer

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