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)
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