Can Subsidies for MARs be Procompetitive
AbstractWe show that a market access requirement (MAR) can increase competition and reduces prices if a properly designed subsidy scheme is used to enforce the requirement. This is in contrast to most of the recent literature which has generally concluded that MARs are unambiguously anticompetitive. Our analysis underscores the importance of proper targeting and shows that it is sensitive to the composition of firms within an industry.
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Bibliographic InfoPaper provided by Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER) in its series Papers with number 98-008.
Length: 12 pages
Date of creation: 1998
Date of revision:
Contact details of provider:
Postal: Purdue University, Center for International Business Education and Research, Krannert Graduate School of Management, 1310 Krannert Building West Lafayette, Indiana 47907-1310.
Web page: http://www.krannert.purdue.edu/
More information through EDIRC
TRADE ; SUBSIDIES ; PUBLIC POLICY;
Other versions of this item:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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