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Full-Text Articles in Social and Behavioral Sciences
Returns To Public Investments In Agriculture With Imperfect Downstream Competition, Stephen F. Hamilton, David L. Sunding
Returns To Public Investments In Agriculture With Imperfect Downstream Competition, Stephen F. Hamilton, David L. Sunding
Economics
A multiple-market framework is developed to measure the size and distribution of research benefits. The model considers an upstream raw product market and a downstream finished product market and allows for imperfect competition in the intermediary food-processing sector. A central conceptual result is derived: an increase in raw product output is a sufficient condition for cost- reducing innovations in the farm sector to increase social welfare. A special case of linear farm supply and isoelastic processing production functions reveals that necessary conditions for welfare to decrease are a convergent farm supply shift, an oligopsonistic upstream market configuration, and increasing returns-to-scale …
Price Competition Between Two International Firms Facing Tariffs, Eric O'N. Fisher, Charles A. Wilson
Price Competition Between Two International Firms Facing Tariffs, Eric O'N. Fisher, Charles A. Wilson
Economics
This paper examines the effects of tariffs on price setting duopolists selling a homogeneous product. The producers cannot segment geographically distinct markets. It provides a complete characterization of the equilibrium (mixed) strategies and analyzes the pattern of competition for different tariffs. If a country raises its tariff, the profits of both producers increase, although the protected firm typically benefits more than its foreign counterpart. Growth in one market may reduce the profits of the firm located in the other market.