Servicios Personalizados
Revista
Articulo
Indicadores
- Citado por SciELO
- Accesos
Links relacionados
- Similares en SciELO
Compartir
EconoQuantum
versión On-line ISSN 2007-9869versión impresa ISSN 1870-6622
Resumen
KAYALICA, M. Ozgur y ESPINOSA RAMIREZ, Rafael Salvador. Political contributions, subsidy and mergers. EconoQuantum [online]. 2012, vol.9, n.2, pp.61-80. ISSN 2007-9869.
We examine, in a oligopolistic partial equilibrium model, the effects of mergers and internal lobbies in shaping national subsidy policies. Domestic and foreign firms compete in the market for a homogeneous good in a host country, then the optimal output of the firms can be affected ambiguously by the government subsidy policy in the host country. Domestic firms offer political contributions to the government, that are tied to the government's policy decision. The government sets the optimal policy maximizing a weighted sum of total contributions and aggregate social welfare taking into account merger of domestic firms as a competitive response.
Palabras llave : Foreign Direct Investment; Mergers; Lobby.