environments can produce such an outcome. We use the model to explore the role of production subsidies, support prices, easing …

This paper examines possible consequences of subsidies to R&D and to volume production proposed under the Clinton … price. Policy simulations show that steady state yields and profits are lower, while prices are higher with subsidies for … capacity acquisition than with R&D subsidies. This occurs because a firm's incentives to do R&D are diminished by a subsidy on …

highlighted by focusing on taxes and subsidies to implement minimum market share requirements. Both taxes and subsidies chosen by …