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32 Va. J. Int'l L. 837 (1991-1992)
Investment Contests and Subsidy Limitations in the EC

handle is hein.journals/vajint32 and id is 847 raw text is: Investment Contests and Subsidy Limitations in the EC JEFFERY ATIKt Introduction ................................................. 838 I. Investment Subsidies and Locational Decisions .......... 845 A. Investment Subsidies and Private Decisions ........ 845 B. Broad and Narrow Locational Decisions ........... 847 II. Investment Competition and the Capture of Subsidies ... 848 A. Locational Advantage and Neutrality .............. 848 B. Effect of Investment Competition on Subsidies ...... 849 III. Models of Investment Contests ......................... 850 A. Assumptions ....................................... 850 B. Game 1: One-Round, Open Bidding, Locational N eutrality ......................................... 851 C. Game 2: One-and-a-Half-Round, Open Bidding, Locational Neutrality .............................. 853 D. Non-Finite Games, Closed Bidding ................ 855 E. Presence of Locational Advantage .................. 856 IV. Strategies of the Firm and the Rival States .............. 858 A. Strategies of the Firm .............................. 858 B. Strategies of the Rival States ....................... 858 V. Existing Limits on the Provision of Investment Subsidies in the EC .............................................. 861 A. GATT-Imposed Limits ............................ 861 B. EC Limits ......................................... 862 t Associate Professor, Suffolk University Law School. &B. 1976, University of California at Berkeley, J.D. 1982, Yale University. Portions of this Article were presented at the European International Business Association annual meeting held in Copenhagen, December 15-17, 1991. Margaret Pearson, Marin Scordato and Joel Trachtman provided helpful criticism. I am most grateful for the research assistance of James Romeo, Keith Sjoholm and Thomas T. Tuttle.

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