Time:5.17 12:00-14:00
Location：A618
Title:Endogenous Equity Shares in Cournot: Welfare Analysis and Policy
Presenter:Kiriti Kanjilal
Abstract：
We consider a duopoly in which firms can strategically choose equity shares on their rival's profits before competing in quantities. We identify equilibrium equity shares, and subsequently compare them against the optimal equity shares that maximize social welfare. Most previous studies assume that equity shares are exogenous, and those allowing for endogenous shares do not evaluate if equilibrium shares are socially excessive or insufficient. Our results also help us identify subsidies and taxes on equity acquisition that induce firms to produce a socially optimal output without the need to directly tax output levels.
Introduction：
Kiriti Kanjilal is an Assistant Professor in Economics of Indraprastha Institute of Information Technology, Delhi. He completed his Integrated Masters in Economics at the University of Hyderabad in 2013 and defended his PhD in Economics at Washington State University in May 2018. His dissertation was titled Essays in Behavioral Industrial Organization and Natural Resource Economics. His research interests are primarily in the fields of microeconomics, game theory, industrial organization, environmental economics and behavioral economics. He also has experience in conducting economic experiments.
