Deciphering the Innovation Subsidy Puzzle: Government Choices amid Supply Chain Encroachment
Jinglve Wang,
Hongping Yuan
Abstract:Although the impact of government subsidies on private innovation has been widely recognized and researched in numerous studies, few have considered the increasingly prevalent phenomenon of supply chain encroachment in their analysis. This paper explores this phenomenon through a game-theoretic model that takes into account a government entity, a supplier, and a manufacturer. The primary aim is to understand how the government can make optimal subsidy decisions when the supplier moves into the supply chain. Se… Show more
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