There is a free lunch after all
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Chun-Hsiung Liao; Yair Tauman
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Article
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2004
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Elsevier Science
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English
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This paper shows that there is a simple way for a financial institution to make a positive profit, free of risk, under imperfect competition. The institution plays a very limited role. It offers firms in the industry a per-unit subsidy in return for a predetermined upfront fee. It neither produces i