Mo. Moore et Sm. Suranovic, LOBBYING AND COURNOT-NASH COMPETITION - IMPLICATIONS FOR STRATEGIC TRADE-POLICY, Journal of international economics, 35(3-4), 1993, pp. 367-376
Arguments for strategic trade intervention with Cournot duopolists are
reconsidered in a model where domestic firms can lobby for increased
subsidies. An export subsidy may not improve national welfare if lobby
ing costs are included. Even if an optimal positive subsidy exists, th
e government needs information about lobbying effectiveness in order t
o correctly implement the program.