This paper focuses on the role that production subsidies play in a Bertrand mixed duopoly. The paper examines four regimes: mixed and private duopoly, each with and without subsidies. The results of this study are compared with the findings of the existing Cournot mixed market literature. As a result, the paper shows that that the introduction of production subsidies into the analyses of Bertrand and Cournot mixed markets can improve social welfare.
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