Oligopolistic competition and economic welfare. A general equilibrium analysis of entry regulation and tax-subsidy schemes

Hideki Konishi, Masahiro Okuno-Fujiwara, Kotaro Suzumura

Research output: Contribution to journalArticle

37 Citations (Scopus)


Two contributions to the general equilibrium analysis of an oligopolistic economy with free entry are intended. First, we generalize the excess entry theorem to the effect that a marginal decrease in the number of oligopolistic firms from the free entry equilibrium level improves economic welfare. Second, we explore the Pareto-improving tax-subsidy schemes in an oligopolistic economy. Several self-financing and Pareto-improving tax-subsidy schemes will be identified. In contrast with the preceding analysis by Atkinson and Stiglitz, which focused on the 'long-run' incidence of corporate taxation, we analyse the 'short-run' as well as 'long-run' welfare implications of various policies under generalized conditions.

Original languageEnglish
Pages (from-to)67-88
Number of pages22
JournalJournal of Public Economics
Issue number1
Publication statusPublished - 1990
Externally publishedYes


ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

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