This paper uses a duopoly model with horizontally differentiated products to analyse how price collusion in the presence of a uniform tax affects market equilibrium. Moreover, this paper investigates the effect of price collusion on social welfare and the government's decision in setting the optimal tax. We show that in the presence of a uniform tax, instead of bringing social welfare down as is traditionally believed, price collusion affects government policy implication. We further show that firms still prefer colluding rather than competing, for which the government's policy decision becomes the key point. By allowing the optimal tax to be negative, we find that under Bertrand competition the government can impose a positive, zero or negative tax on firms depending on the level of the product differentiation. There is a tendency that the more heterogeneous the products, the more subsidies will be given. Under price collusion, the government always subsidises firms regardless of the degree of product differentiation. Finally, we show that when the products are sufficiently differentiated, the government will subsidise firms more under collusion than they will under Bertrand. In short, firms can use price collusion to induce the government to subsidise them.
Mount Telomoyo does not only have agricultural potential, but also tourism potential. However, this potential has not been developed optimally. This research aimed to analyze the tourism potential at Mount Telomoyo and formulate its development strategies, so that it becomes a region with fast growing economy. The method used in this research was Delphi and AHP analysis methods in strategy formulation. The potentials of nature tourism at Mount Telomoyo are Sekar Langit Waterfall, Seloprojo Waterfall, Bleder Lake, and Andong Mountain Climbing. The cultural tourism includes Umbul Temple Hot Pool, Sunan Geseng Tomb, and the cultural events such as traditional ceremony/Tradition and People’s Art. The locations of development priority were Seloprojo Tourism Area and Pandean Tourist Village. The development strategies of Telomoyo area as a global tourism included the construction of adequate road infrastructure, so that accessibility and mobility in Telomoyo area can run well. In addition, there was a need for the construction of supporting facilities and infrastructures, buildings and environmental arrangement, tourism and culture promotion using print and electronic media and involving stakeholders in the development and promotion, and socialization to the community about tourism.Keywords: Tourism, Potential, Strategy.
This paper analyzes the location choice of an upstream monopolist who supplies input to asymmetric duopoly firms in a downstream market. The monopolist is partially private, in that it cares not only about its profit maximization but also about the survival of the downstream firms. Based on the Hotelling model, we find that the monopolist is always attracted to locate closer to the efficient downstream firm. In particular, when the efficiency difference between the two downstream firms is not too high, such that no firm is driven out of the market, the monopolist locates at a distance of 1/6 from the efficient firm in the line segment of unit length. Finally, considering the downstream firms’ survival, we show that the upstream monopolist charges a higher input price on the efficient firm. This study may be relevant to the product differentiation framework, in which firms can benefit from producing goods that are close to the preference of high-type consumers; to the pharmaceutical industry, in which pharmacy companies must cover a broad market segment; or to the policymaking process, in which policymakers may have an incentive to make a policy preferred by a particular group of the society. JEL Classifications: D42, L12, L230
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.