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A game of subsidization or taxation for new technology adoption in international duopoly

Author

Listed:
  • Masahiko Hattori

    (Doshisha University Japan)

  • Yasihito Tanaka

    (Doshisha University Japan)

Abstract

The adoption of new technology by firms is important for the economic growth, particularly developing countries. However, depending on the values of various parameters about demand, production cost, and setup cost, the adoption of new technology by firms may be insufficient or excessive in less competitive industries from the point of view of social welfare. Then, subsidization or taxation policies by the governments are necessary. In this paper we present an analysis of subsidization or taxation for new technology adoption in a framework of international duopoly with differentiated goods.

Suggested Citation

  • Masahiko Hattori & Yasihito Tanaka, 2018. "A game of subsidization or taxation for new technology adoption in international duopoly," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 55(1 and 2), pages 110-127, June and .
    • Handle: RePEc:phs:prejrn:v:55:y:2018:i:1and2:p:110-127
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/971/869
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    More about this item

    Keywords

    subsidy or tax; new technology adoption; international duopoly;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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