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- W2393021472 abstract "Under the hypothesis of Single Crossing Condition of intersectionality theory,the paper compares and contrastes the benefits of buying luxury car and of buying cheap car.It is find that the benefits luxury cars bring to its owner is significantly higher than purchasing cheap ones.It is proved that compare the socially optimal situation,the price of cheap cars are higher than it should be and the outputs of making luxury cars will be lower than it should be if the manufacturers are unable to take perfect price discrimination strategy.In a perfectly competitive market structure,comparing to the socially optimal car production,luxury car production is too high,and cheap car production is low.The results show that while manufacturers do not take their externalities in the production decision when they make decisions.They prefer to turn the exterior effects into the interior effects.Thus,to achieve social optimum outputs of luxury cars and cheap cars avoiding market failure,the government of China should give subsidies to both luxury automobile production and cheap car production." @default.
- W2393021472 created "2016-06-24" @default.
- W2393021472 creator A5081731987 @default.
- W2393021472 date "2013-01-01" @default.
- W2393021472 modified "2023-09-23" @default.
- W2393021472 title "Study on Car Industry Policy of China" @default.
- W2393021472 hasPublicationYear "2013" @default.
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