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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

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IMPACT FACTOR 2016: 0.252
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1935-1682
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Volume 8, Issue 1 (Aug 2008)

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Volume 6 (2006)

Volume 4 (2004)

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Volume 1 (2001)

Equilibrium State Aid in Integrating Markets

Stephen Martin / Paola Valbonesi
Published Online: 2008-08-18 | DOI: https://doi.org/10.2202/1935-1682.1904

Abstract

We present a model of the impact of state aid on equilibrium market structure and on market performance in an integrating market when the process of integration is driven by consumer inertia. In a partial equilibrium model, it is an equilibrium for governments to grant state aid, even though this reduces common market welfare.

Keywords: state aid; exit; market integration

About the article

Published Online: 2008-08-18


Citation Information: The B.E. Journal of Economic Analysis & Policy, ISSN (Online) 1935-1682, DOI: https://doi.org/10.2202/1935-1682.1904.

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