دانلود رایگان مقاله اثرات خروجی و رفاه شرکت غیر انتفاعی در انحصار مخلوط

Abstract

We study the output and welfare impacts of a non-profit firm in a mixed duopoly. In particular, we show that technical efficiency at the margin is crucial to determine whether the social responsibility of the non-profit firm increases or reduces welfare, assuming general demand and cost functions. This implies the paradoxical result that more social responsibility may reduce welfare. In addition, we introduce the concept of technical advantage in production and apply it to the study of a mixed duopoly considering convex-quadratic cost functions. Interestingly, a firm may have a technical advantage in production and at the same time be technically less efficient than its rival at the margin. We show that the paradox eventually occurs as the non-profit firm exhibits more social responsibility if firms have quadratic cost functions. This can happen even if the non-profit firm has a substantial technical advantage over its rival.

4. Conclusions

In this article, we study the impacts of a non-profit firm on output and welfare in a mixed duopoly. We show that technical efficiency at the margin is crucial in determining whether more social responsibility of the NPO increases or reduces welfare assuming relatively general demand and cost functions. This leads to the paradoxical result that more social responsibility of the NPO may eventually reduce welfare. We introduce the concept of technical advantage in production in order to study a mixed duopoly where firms have convex cost functions. In particular, we say that a firm has a technical advantage over its rival if it can produce the same output that its rival produces at lower marginal and total costs than the rival. This concept is useful if firms have convex instead of linear cost functions. The point is that a firm may have a technical advantage over its rival but higher marginal costs at the margin because it produces more output. Interestingly, we can show that the paradoxical result that more social responsibility reduces welfare is very likely to occur if firms have quadratic cost functions. This happens even if the NPO has a substantial technical advantage over the FPF.