FigureĀ 2.
Market regimes as a function of transaction costs and the subsidy s (U = 0). Market structures are denoted by the corresponding payoff matrix outcome. More specifically, {2, 2} denotes a duopoly, with the private firm exporting indirectly; {3, 2} a duopoly with the private firm exporting directly; {0, 2} a monopoly of the STE and {3, 0} a monopoly of the private firm when it exports directly.

Market regimes as a function of transaction costs and the subsidy s (U = 0). Market structures are denoted by the corresponding payoff matrix outcome. More specifically, {2, 2} denotes a duopoly, with the private firm exporting indirectly; {3, 2} a duopoly with the private firm exporting directly; {0, 2} a monopoly of the STE and {3, 0} a monopoly of the private firm when it exports directly.

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