Abstract: Governments are interested in inducing positive habits and behaviors in its citizens and discouraging ones that are harmful to the individual or to the society. Taxation and legislation are usually used to discourage negative behaviors. Subsidy seems the politically correct way to encourage positive behaviors. In this paper, the Subgame Perfect Nash Equilibrium is used to deduce the effect of the government subsidy on the user consumption, prices and producer and distributor profits.

Dr. Magdi Amer and Dr. Ahmed Kattan, “Using the Sub-Game Perfect Nash Equilibrium to Deduce the Effect of Government Subsidy on Consumption Rates and Prices” International Journal of Advanced Computer Science and Applications(IJACSA), 6(11), 2015. http://dx.doi.org/10.14569/IJACSA.2015.061102

@article{Amer2015,
title = {Using the Sub-Game Perfect Nash Equilibrium to Deduce the Effect of Government Subsidy on Consumption Rates and Prices},
journal = {International Journal of Advanced Computer Science and Applications},
doi = {10.14569/IJACSA.2015.061102},
url = {http://dx.doi.org/10.14569/IJACSA.2015.061102},
year = {2015},
publisher = {The Science and Information Organization},
volume = {6},
number = {11},
author = {Dr. Magdi Amer and Dr. Ahmed Kattan}
}