Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5128330 | Operations Research Letters | 2017 | 6 Pages |
Abstract
We investigate a symmetric duopoly setting in which two manufacturers produce the traditional and public interest (PI) products under a government's subsidy scheme. A higher subsidy can increase the sale of the PI product but reduce the sale of the traditional product. Then, we study an asymmetric setting in which a manufacturer produces one of the two products and the other manufacturer produces both products. The government's optimal subsidy is increasing in the marginal externality of the PI product.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Chunlin Luo, Mingming Leng, Xin Tian, Shouyang Wang,