Most consumers in rural areas of many developing countries cannot afford to purchase certain livelihood improvement products such as home appliances. To improve consumer welfare and manufacturer profit, many governments launch different types of subsidy programs that offer subsidies to...

should the prevailing market price be below the pre-specified MSP. In this paper, we consider a market consisting of infinitesimally small, rational, and strategic farmers(with heterogeneous production costs) who face market and yield uncertainties. Our equilibrium analysis reveals that (i)...