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The Optimal Subsidy Policy Under Asymmetric Information: On Taiwan Film Industry's SubsidyChen, Li-chun 04 July 2007 (has links)
Our purpose is to examine: what should be the best subsidy mechanism which can reduce the lost from the asymmetric information problem whereas the administration performs a subsidy policy. We use the incentive contract theory to establish our models, and analyze different kinds of subsidy policy results. We prove that: compare with the partial equally subsidy, zero-subsidy and full-purchase subsidy, the partial discriminably subsidy is the best subsidy policy.
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