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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|Date of creation:||1998|
|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/
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Douglas A. Irwin, 1994.
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NBER Working Papers
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- Thursby, M. & Krisna, K. & Roy, S., 1997.
"Procompetitive Market Access,"
97-006, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
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ISER Discussion Paper
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"Implementing Market Access,"
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Wiley Blackwell, vol. 6(4), pages 529-544, November.
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- Krishna, K & Thursby, M & Roy, S, 1996. "Implementing Market Access," Papers 96-011, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
- 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.
- Krishna, Kala & Morgan, John, 1998. "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.
- Thierry Verdier, 1998. "Results-oriented versus rules-oriented trade policies:: A theoretical survey," European Economic Review, Elsevier, vol. 42(3-5), pages 733-744, May.
- Greaney, Theresa M., 1996. "Import now! An analysis of market-share voluntary import expansions (VIEs)," Journal of International Economics, Elsevier, vol. 40(1-2), pages 149-163, February.
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