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When designing schemes to help SMEs survive crises, the government typically faces asymmetric information, so that it … cannot target the SMEs most worth saving. We show that the government can exploit the information in the borrower loan demand … fully subsidise the funding cost of only those SMEs whose loan size is below a threshold. If the aim is economic efficiency …
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A sizeable proportion of enterprises, especially SMEs, in receipt of financial assistance from the government, will …
Persistent link: https://www.econbiz.de/10012251378
A pluralist approach to economics is both necessary from anacademic as well a policy point of view. From an academicviewpoint pluralism can be understood as the outcome ofcompetition and specialization in the search for new ideasthat can deal with imperfections of the real world. From apolicy...
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Firms signal high quality through high prices even if the market structure is highly competitive and price competition is severe. In a symmetric Bertrand oligopoly where products may differ only in their quality, production cost is increasing in quality and the quality of each firm’s product...
Persistent link: https://www.econbiz.de/10011372971
We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in knowledge: some consumers know both the prices and quality of the products offered, some know only the prices and some know neither. We show that two types of signalling...
Persistent link: https://www.econbiz.de/10011376636
This paper investigates the response of full service carriers (FSCs) to theentry of low-cost carriers (LCCs). We develop a model of airline competition, which accommodates various market structures, some ofwhich include low-cost players. Using data on published airfares ofLufthansa, British...
Persistent link: https://www.econbiz.de/10011335198