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Oligopoly and Financial Structure: The Limited Liability Effect

✍ Scribed by James A. Brander and Tracy R. Lewis


Book ID
124869787
Publisher
American Economic Association
Year
1986
Tongue
English
Weight
457 KB
Volume
76
Category
Article
ISSN
0002-8282

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This paper explores the link between an environmental regulatory instrument and the financial and output decisions of firms in an oligopolistic industry facing demand uncertainty. It is shown that environmental regulations such as pollution taxes may induce firms to alter their financial structure,