Implementing market access

Kala Krishna, Suddhasatwa Roy, Marie Thursby

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)529-544
Number of pages16
JournalReview of International Economics
Volume6
Issue number4
DOIs
StatePublished - Nov 1998

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development

Fingerprint Dive into the research topics of 'Implementing market access'. Together they form a unique fingerprint.

Cite this