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Implementing Market Access

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Author Info
Krishna, Kala
Roy, Suddhasatwa
Thursby, Marie

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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. Copyright 1998 by Blackwell Publishing Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 6 (1998)
Issue (Month): 4 (November)
Pages: 529-44
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Handle: RePEc:bla:reviec:v:6:y:1998:i:4:p:529-44

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kala Krishna & Suddhasatwa Roy & Marie Thursby, 1997. "Procompetitive Market Access," NBER Working Papers 6184, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Krishna, Kala, 1990. "The Case of the Vanishing Revenues: Auction Quotas with Monopoly," American Economic Review, American Economic Association, vol. 80(4), pages 828-36, September. [Downloadable!] (restricted)
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  3. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter. [Downloadable!] (restricted)
  4. Ethier, Wilfred J & Horn, Henrik, 1996. "Results-Oriented Trade Policy," Review of International Economics, Blackwell Publishing, vol. 4(1), pages 17-39, February.
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  5. Greaney, Theresa M., 1996. "Import now! An analysis of market-share voluntary import expansions (VIEs)," Journal of International Economics, Elsevier, vol. 40(1-2), pages 149-163, February. [Downloadable!] (restricted)
  6. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February. [Downloadable!] (restricted)
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  7. Neil Bjorksten, 1994. "Voluntary Import Expansions and Voluntary Export Restraints in an Oligopoly Model with Capacity Constraints," Canadian Journal of Economics, Canadian Economics Association, vol. 27(2), pages 446-57, May. [Downloadable!] (restricted)
  8. Pinelopi K. Goldberg & Michael M. Knetter, 1995. "Causes and Consequences of the Export Enhancement Program for Wheat," NBER Working Papers 5359, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Kowalczyk, Carsten, 1994. "Monopoly and trade policy," Journal of International Economics, Elsevier, vol. 36(1-2), pages 177-186, February. [Downloadable!] (restricted)
  10. Dinopoulos, Elias & Kreinin, Mordechai E, 1990. "An Analysis of Import Expansion Policies," Economic Inquiry, Oxford University Press, vol. 28(1), pages 99-108, January.
  11. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May. [Downloadable!] (restricted)
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  12. Gruenspecht, Howard K., 1988. "Export subsidies for differentiated products," Journal of International Economics, Elsevier, vol. 24(3-4), pages 331-344, May. [Downloadable!] (restricted)
  13. Eaton, Jonathan & Grossman, Gene M, 1986. "Optimal Trade and Industrial Policy under Oligopoly," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 383-406, May. [Downloadable!] (restricted)
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  14. Carmichael, Calum M., 1987. "The control of export credit subsidies and its welfare consequences," Journal of International Economics, Elsevier, vol. 23(1-2), pages 1-19, August. [Downloadable!] (restricted)
  15. Douglas A. Irwin, 1994. "Trade Politics and the Semiconductor Industry," NBER Working Papers 4745, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kala Krishna & John Morgan, 1996. "Implementing Results-Oriented Trade Policies: The Case of the US-Japanese Auto Parts Dispute," NBER Working Papers 5680, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Kala Krishna & Suddhasatwa Roy & Marie C. Thursby, 2000. "Can Subsidies for MARs be Procompetitive?," NBER Working Papers 7624, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Larry D. Qiu & Barbara J. Spencer, 2001. "Keiretsu and Relationship-Specific Investment: Implications for Market-Opening Trade Policy," NBER Working Papers 8279, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Byron Gangnes & Craig Parsons, 2004. "Have U.S.-Japan Trade Agreements Made a Difference?," Working Papers 08-2004, Singapore Management University, School of Economics. [Downloadable!]
    Other versions:
  5. Kala Krishna & Suddhasatwa Roy & Marie Thursby, 1997. "Procompetitive Market Access," NBER Working Papers 6184, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Barbara J. Spencer & Larry D. Qiu, 2000. "Keiretsu and Relationship-Specific Investment: A Barrier to Trade?," NBER Working Papers 7572, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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