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other firms in the production network. We compare the equilibrium and optimal allocations in a general equilibrium model … policies that implement the first-best allocation, allowing for subsidies to input purchases, network formation, and … subsidies to transactions are infeasible, the second-best subsidies for resilience and network formation depend on production …
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Empirical studies have found that enhanced foreign competition can encourage or discourage innovation. To address this relationship, I examine a market structure in which a small number of large multi-product oligopolists compete with a large number of small single-product firms in the same...
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