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Alogoskoutis assume Bertrand competition Brander and Spencer calculated Centre for Economic CEPR Discussion Papers comparative advantage consider cost advantage cost asymmetries cost competitive cost of funds Cournot Competition Cournot duopoly deadweight loss demand function domestic firms Eaton and Grossman Economic Policy Research equals equilibrium ex ante game ex post game export subsidies factors of production firm chooses firms compete foreign firm foreign government free trade Gruenspecht 1988 home and foreign home firm home government home subsidy hone implications International Economics International Subsidy Games Journal of International level of welfare linear demands Markusen maximising Meza Neary negative oligopolistic oligopoly optimal ex post optimal policy output levels post subsidy price of government profit shifting reaction function Section shadow price shows social and private social opportunity cost social welfare function strategic substitutes strategic trade policy subsidy differential subsidy is positive subsidy level subsidy payments threshold value trade theory welfare function