TY  - JOUR
AU  - Krishna,Kala
AU  - Roy,Suddhasatwa
AU  - Thursby,Marie
TI  - Implementing Market Access
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5593
PY  - 1996
Y2  - May 1996
UR  - http://www.nber.org/papers/w5593
L1  - http://www.nber.org/papers/w5593.pdf
N1  - Author contact info:
Kala Krishna
Department of Economics
523 Kern Graduate Building
The Pennsylvania State University
University Park, PA 16802
Tel: 814/865-1106
Fax: 814/863-4775
E-Mail: kmk4@psu.edu

Marie C. Thursby
College of Management
Georgia Institute of Technology
800 West Peachtree Street, NW
Atlanta, GA 30308-1149
Tel: 404/894-6249
Fax: 404/385-4894
E-Mail: marie.thursby@mgt.gatech.edu
AB  - 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 government and firms is highlighted by focusing on taxes and subsidies to implement minimum market share requirements.  Both taxes and subsidies chosen by the home government after firms have picked prices create powerful incentives for firms to raise prices - effects that are similar in nature to those found with quotas/VERs.  We show that some degree of imprecision in implementing the target engenders less anticompetitive outcomes relative to perfect enforcement.
ER  -