How Hierarchical Structures Impact on Competition and Taxation

Alexsandr Galegov, Andrey Garnaev

Saint Petersburg State University, Russia

Abstract: Stackelberg models for hierarchical oligopolistic markets with a homogenous product were studied by researchers extensively. The goal of this paper is to extend the classical solution in closed form of the Stackelberg model for a general hierarchical structures composed by firms arranged into groups of different hierarchical levels and to find optimal tax rate for this model.

Language: English