Resource title

Generalised oligopoly derived demand with an application to tax induced entry

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Resource description

Equations are derived for the factor demand of an N firm oligopoly for fairly general market demand curves and production functions. Free-entry is then introduced and it is shown that this may either raise or lower derived demand elasticity. This result is then applied to show that a unit production tax may encourage entry and so cause larger changes in price and quantity in the short run than the long run.

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en

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http://eprints.lse.ac.uk/35471/

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