Equilibrium State Aid in Integrating Markets
We present a model of the impact of state aid on equilibrium market structure and on market performance in an integrating market when the process of integration is driven by consumer inertia. In a partial equilibrium model, it is an equilibrium for governments to grant state aid, even though this reduces common market welfare.
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Volume (Year): 8 (2008)
Issue (Month): 1 (August)
Pages: 1-39
| Handle: | RePEc:bpj:bejeap:v:8:y:2008:i:1:n:33 |
| Contact details of provider: | Web page: http://www.degruyter.com
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| Order Information: | Web: http://www.degruyter.com/view/j/bejeap |
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