Rationality of State Subsidies - A Theoretical Approach

The states intervention on the economics, especially direct measures are in focus of the 21st centurial economic and legal interest. Analyzing the concepts of European and global thinkers and regulators on the competition and state aids, it is obvious that the protection of competition and to ensure the market's integrity is a priority for all, but realizing the vulnerability of the markets as seen in 2008, the protectionism is under discussion again. However, when we try to understand the state's role in economy and if we want to evaluate the state's actions, we have to decide the viewpoint, the scale of rationality under we can examine if the action was rational or not. For this evaluation we can declare the state as a player in the economy, where his actions (if rational) can be predicted. For this evaluation and for the possibility of prediction we can use the terms of game theory. The study gives an introduction to the game-theoretical approach of state actions