This paper is a combination of spatial duopoly model together with consumption externality model. Under the circumstance of heterogeneous products, I will discuss separately the influence of consumption externalities on the optimal equilibrium strategy of the firm. When consumers are characterized with the snob, the equilibrium price tends to be higher; however, consumers are characterized with the conformity, firms will be fierce price competition. Moreover, given the existence of conspicuous goods, consumers purchase a conspicuous good in order to display their relative high income and thereby achieve greater social status. And for this type of conspicuous consumers, the government will generally levy a luxury tax or even prohibit the consumption of the conspicuous good. And finally, by comparing these two cases with the laissez-faire economy, changes in the social welfare are exactly in an opposite direction.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0706111-181115 |
| Date | 06 July 2011 |
| Creators | Chou, Hui-Ming |
| Contributors | Ssu-Shen Chen, Shan-Non Chin, Tru-Gin Liu |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0706111-181115 |
| Rights | not_available, Copyright information available at source archive |
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