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dc.contributor.authorJin, Jim Yongtao
dc.contributor.authorKobayashi, Shinji
dc.identifier.citationJin , J Y & Kobayashi , S 2016 , ' Impact of risk aversion and countervailing tax in oligopoly ' Annals of Finance , vol. 12 , no. 3 , pp. 393-408 .
dc.identifier.otherPURE: 247517065
dc.identifier.otherPURE UUID: eb8bda63-bb47-4813-9eb8-5f34f5d42bbf
dc.identifier.otherScopus: 84995378500
dc.identifier.otherWOS: 000390879000005
dc.descriptionKobayashi’s work was partially supported by JSPS KAKENHI Grant Number JP15K03462.en
dc.description.abstractThe literature recognizes the qualitative effects of risk aversion on oligopolistic market performance, but less is known about their magnitudes. We quantitatively evaluate these effects in Cournot and Bertrand oligopolies where firms maximize mean-variance utilities under linear demand and costs. The impacts are very similar for the two types of oligopoly, but have opposite signs. The impacts of a firm’s risk aversion on outputs, prices, consumer surplus and social welfare can be expressed via potentially observable variables. Since these impacts resemble the effects of firms’ cost changes, a regulator can reduce or eliminate undesirable effects of risk aversion by changing firms’ costs with appropriate countervailing taxes.
dc.relation.ispartofAnnals of Financeen
dc.rightsCopyright (c) The Author(s) 2016. This is the final published version of the work which was originally published at This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (, which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.en
dc.subjectRisk aversionen
dc.subjectQuantity versus price competitionen
dc.subjectWelfare effecten
dc.subjectUnit taxen
dc.subjectHB Economic Theoryen
dc.titleImpact of risk aversion and countervailing tax in oligopolyen
dc.typeJournal articleen
dc.description.versionPublisher PDFen
dc.contributor.institutionUniversity of St Andrews.School of Economics and Financeen
dc.description.statusPeer revieweden

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