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...

The view that US businesses are being unfairly hurt by barriers to access in foreign markets has raised demands for market access requirements (MARs) from within US industry and government alike. We show that, contrary to the prevailing wisdom of the recent literature, MARs can be implemented in...