Rubin, Paul H.; Cohen, Mark A. - In: Eastern Economic Journal 18 (1992) 3, pp. 333-344
quota will be increased. If an industry has sufficient political power to obtain subsidies from government then the … quotas, a second-best approach. This policy is flawed. Quotas are endogenous. If a merger allows firms to reduce output, the … authorities should assume that these subsidies will be reduced if market power increases. Paradoxically, for political entry …