Can Subsidies for MARs be Procompetitive
We 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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"Implementing Market Access,"
96-011, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
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- Krishna, K & Roy, S & Thursby, M, 1996. "Implementaing Market Access," Papers 96-003, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
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National Bureau of Economic Research, Inc.
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University of Chicago - George G. Stigler Center for Study of Economy and State
92, Chicago - Center for Study of Economy and State.
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"Implementing results-oriented trade policies: The case of the US-Japanese auto parts dispute,"
European Economic Review,
Elsevier, vol. 42(8), pages 1443-1467, September.
- Kala Krishna & John Morgan, 1996. "Implementing Results-Oriented Trade Policies: The Case of the US-Japanese Auto Parts Dispute," NBER Working Papers 5680, National Bureau of Economic Research, Inc.
- Ethier, Wilfred J & Horn, Henrik, 1996.
"Results-Oriented Trade Policy,"
Review of International Economics,
Wiley Blackwell, vol. 4(1), pages 17-39, February.
- Kala Krishna & Suddhasatwa Roy & Marie Thursby, 1997. "Procompetitive Market Access," NBER Working Papers 6184, National Bureau of Economic Research, Inc.
- Douglas A. Irwin, 1994. "Managed Trade," Books, American Enterprise Institute, number 51697, 6.
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