An optimal tax/subsidy for output and pollution control under asymmetric information in oligopoly markets
- Cite this article as:
- Kim, JC. & Chang, KB. J Regul Econ (1993) 5: 183. doi:10.1007/BF01065365
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This paper constructs an optimal incentive tax/subsidy scheme in an oligopoly market with pollution, as a generalization of the Loeb-Magat scheme, which is nondiscriminatory and requires less information for implementation than the conventional ones. Some interesting properties of the scheme are discussed.