cross-subsidization

cross-subsidization

see SUBSIDY.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

cross-subsidization

the practice by firms of offering internal subsidies to certain products or departments within the firm financed from the profits generated by other products or departments. Cross-subsidization is often used by diversified and vertically integrated firms as a means of financing new product development; DIVERSIFICATION into new areas; or to facilitate price cuts to match intense competition in certain of its markets. See VERTICAL INTEGRATION, PRICE-SQUEEZE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
To achieve this, all premiums paid by members are pooled nationally and in effect, there is a cross-subsidization across districts.
The Board directed to undertake commercial feasibility study under cross-subsidization mode and prepare a new PC-1 and then initiate procurement process, afresh, under PPP arrangement.
The petitioners have sought directions to the central government to strictly mandate the creation of requisite charging infrastructure and cross-subsidization of Electric Vehicles by charging a marginal fee on fossil fuel based vehicles.
We evaluate the impact of restructuring on residential, commercial and industrial customers, with an explicit focus on cross-subsidization. We find robust evidence of two forms of cross-subsidization, inter-class and intra-firm, which we call Type I and II cross-subsidization.
There is no cross-subsidization. Meaning, premiums are paid by each country based only on their own risk.
He also reminded the Prime Minister of Pakistan for the long-awaited demand of the Industry to abolish cross-subsidization on the export-oriented sector and segregation of the same in the tariff category.
Bilwani also reminded the Prime Minister of Pakistan for the long-awaited demand of the Industry to abolish cross-subsidization on export-oriented sector and segregation of the same in the tariff category.
At the heart of this resolution is the fundamental principle that to achieve a healthy, and thereby prosperous, society, we need cross-subsidization and solidarity in healthcare, whereby the rich support the poor, the well support the sick and the haves support the haves not.
Shaker said that the allocated subsidy in the current FY amounts to EGP 52.7bn, which will drop to EGP 43.3bn in FY 2018/2019, then to EGP 31.8bn in FY 2019/2020, then cut in half to EGP 16.5bn in FY 2020/2021, leaving only cross-subsidization of EGP 5.6bn in FY 2021/2022.
In particular, we would need to change prevailing policies on interconnection, unbundling, cross-subsidization, number portability, and the powers of the National Telecommunications Commission (NTC).
A special pricing committee is working on ending cross-subsidization among different regions.