Implementing Market Access
Posted: 10 Sep 1996
There are 2 versions of this paper
Implementing Market Access
NBER Working Paper No. w5593
Number of pages: 37
Posted: 07 Sep 2000
Last Revised: 15 Oct 2022
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37
Abstract
This paper examines ex post subsidies as a means of enforcing market share targets. Subsidies set after firms make their strategic decisions are shown to create powerful incentives for firms to raise prices. These effects are stronger when targets, and hence, subsidies, are specified on a firm-specific rather than industry-wide basis. This occurs because firms perceive themselves as subject to more competition (i.e., more elastic demand) in the latter case.
JEL Classification: F13, H32, H87
Suggested Citation: Suggested Citation
Krishna, Kala and Roy, Suddhasatwa and Thursby, Marie C., Implementing Market Access. Available at SSRN: https://ssrn.com/abstract=4201
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