Agricultural subsidy with capacity constraints and demand elasticity

Oligopoly with Capacity Constraints and Thresholds

    Abstract   Extended Oligopoly models will be introduced and examined in which the firms might face capacity limits, thresholds for minimal and maximal moves, and antitrust thresholds in the case of partial cooperation. Similar situation occurs when there is an additional cost of output adjustment, which is discontinuous at zero due to set-up costs. In these cases the payoff functions of the...

Analyzing Capacity Withholding in Oligopoly Electricity Markets Considering Forward Contracts and Demand Elasticity

In this paper capacity withholding in an oligopolistic electricity market that all Generation Companies (GenCos) bid in a Cournot model is analyzed and the capacity withheld index, the capacity distortion index and the price distortion index are obtained and formulated. Then a new index, Distortion-Withheld Index (DWI), is proposed in order to measure the potential ability of market for capacit...

Subsidy Policies and Insurance Demand∗

Using data from a two-year randomized pricing experiment in China, we study the impact and design of subsidy policies for weather insurance. Results show that subsidies are effective in boosting demand in the short-run but not in the longer term. Exploring the channels, we show that while subsidies increase the direct and social effects of payout experiences by enlarging coverage, they also dam...

The Malawi Agricultural Input Subsidy Programme: Lessons

Background and Context Maize, the main staple crop remains the dominant crop among smallholder farmers in Malawi. Smallholder farmers devote almost 70 percent of their land to maize cultivation, and maize availability in the country de nes the food security situation of the country. Smallholder agriculture in Malawi has been characterized by low productivity, low technology and labour intensive...

Projecting iranian agricultural demand and supply