Generalised oligopoly derived demand with an application to tax induced entry
de Meza, D.
(1982).
Generalised oligopoly derived demand with an application to tax induced entry.
Bulletin of Economic Research,
34(1), 1-16.
https://doi.org/10.1111/j.1467-8586.1982.tb00432.x
(1982).
Generalised oligopoly derived demand with an application to tax induced entry.
Bulletin of Economic Research,
34(1), 1-16.
https://doi.org/10.1111/j.1467-8586.1982.tb00432.x
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.