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Abstract(s)
This paper considers a Cournot competition between a nonprofit firm and a for-profit firm in a homogeneous goods market, with uncertain demand.
Given an asymmetric tax schedule, we compute explicitly the Bayesian-Nash equilibrium. Furthermore, we analize the effects of the tax rate and the degree of altruistic preference on market equilibrium outcomes.
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Keywords
Industrial organization Nonprofit Asymmetric taxation Stochastic demand Bayesian-Nash equilibrium