Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5078187 | International Journal of Industrial Organization | 2012 | 14 Pages |
Abstract
⺠I model capacity-constrained price competition when firms face a new Pigouvian tax. ⺠In some cases, uncertainty about the timing of the tax increases investment. ⺠This stems from both the nature of the uncertainty and firms' strategic interests. ⺠These results emphasize the importance of accounting for initial conditions. ⺠I also find that more protracted uncertainty has greater welfare costs.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Nathan E. Wilson,