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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Year of publication:	1998
Authors:	Krishna, K. ; Roy, S. ; Thursby, M.
Institutions:	Krannert School of Management, Purdue University
Subject:	TRADE \| SUBSIDIES \| PUBLIC POLICY

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Series:	Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
Type of publication:	Book / Working Paper
Notes:	12 pages
Classification:	F13 - Commercial Policy; Protection; Promotion; Trade Negotiations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005478739