Canada subsidizes Canadian magazines to offset the invasion of foreign (primarily U.S.) magazines, which take 90% of

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Canada subsidizes Canadian magazines to offset the invasion of foreign (primarily U.S.) magazines, which take 90% of the country’s sales. The Canada Magazine Fund provides a lump-sum subsidy to various magazines to “maintain a Canadian presence against the overwhelming presence of foreign magazines.” Eligibility is based on high levels of investment in Canadian editorial content and reliance on advertising revenues. What effect will a lump-sum subsidy have on the number of subscriptions sold?

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Managerial Economics and Strategy

ISBN: 978-0134167879

2nd edition

Authors: Jeffrey M. Perloff, James A. Brander

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