英文摘要 |
This paper investigates optimal economic policies, that deal withstray animals. We construct a two-stage game to characterize theinteractions among the regulator, pet shops, and consumers. In particular,we employ a simple Hotelling (1929) model to endogenize the behaviorsof dog/cat purchasers and adopters and show that the regulator may tax orsubsidize pet-animal buyers if it aims to maximize social welfare in animperfectly competitive pet-animal market. On the other hand, taxingpet-animal buyers is the regulator’s best choice in a perfectly competitivepet-animal market. These results hold under both linear and quadraticbreeding-cost and strays’ environmental-damage functions. By contrast,when the regulator is targeting to minimize the number of stray animals,taxing dog/cat buyers is the best choice. This outcome holds whether thepet-animal market is perfectly or imperfectly competitive and whetherthe breeding-cost and strays’ environmental-damage functions are linearor quadratic. |