The paper examines possible consequences of subsidies to R&D and to volume production proposed under the Clinton administration's flat panel display initiative. We do this in the context of a model in which firms behave competitively in the short run, while realizing that their choices of...

We show that a market access requirement (MAR) can increase competition and reduces prices if a properly designed subsidy scheme is used to enforce the requirement. This is in contrast to most of the recent literature which has generally concluded that MARs are unambiguously anticompetitive. Our...

The outcome of trade policies to increase access for foreign firms to the home country's market is shown to be sensitive to the implementation procedure used. The importance of the timing of moves between governement and firms is highlighted by focusing on taxes and subsidies to implement...

The view that US businesses are being unfairly hurt by barriers to access in foreign markets has raised demands for market access requirements (MARs) from within US industry and government alike. We show that, contrary to the prevailing wisdom of the recent literature, MARs can be implemented in...