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Market Structure and Optimal Payout Policy

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  • Robert Beach

Abstract

This paper considers the relationship between market structure and payout policy within the context of an oligopoly in which firms must consider the strategic responses of their competitors. A differential game approach with a finite planning horizon is used for the analysis and a Markovian Nash equilibrium is obtained using a numerical method. The results suggest that given optimal payout policy market competition in the form of a duopoly results in greater reinvestment and earnings than that of a monopoly.

Suggested Citation

  • Robert Beach, 2022. "Market Structure and Optimal Payout Policy," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 14(3), pages 1-76, February.
    • Handle: RePEc:ibn:ijefaa:v:14:y:2022:i:3:p:76
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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