This paper examines the optimal output taxes for polluting oligopolists under endogenous market structure, in the presence of external costs that vary exogenously with aggregate output. For general functional forms, we show that (i) the equilibrium number of firms in an industry may differ from...

In a 1995 paper, Kim and Jung designed an optimal tax scheme for regulating a multiproduct monopolist in a situation of doubly asymmetric information. This paper points out the similarity of their scheme to the incremental surplus subsidy scheme of Sappington and Sibley (1988), examines the...

In a 1994 paper, extending the well-known incremental surplus subsidy scheme of Sappington and Sibley, Schwermer presented a non-Bayesian incentive scheme for regulating a Cournot oligopoly industry. This note designs an oligopolistic incentive scheme for a hierarchical Stackelberg model in...