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Optimal partial privatization in mixed oligopoly: a geometric approach

Author

Listed:
  • Hiroyuki Takami

    (Oita University)

  • Tamotsu Nakamura

    (Kobe University)

Abstract

In homogenous mixed oligopoly neither full nationalization nor full privatization is optimal under moderate conditions. This paper provides an intuitive geometric explanation to the result by means of best-response functions and iso-social-surplus curves. It is also shown that the optimal degree of partial privatization can easily be derived from the explanation.

Suggested Citation

  • Hiroyuki Takami & Tamotsu Nakamura, 2013. "Optimal partial privatization in mixed oligopoly: a geometric approach," Economics Bulletin, AccessEcon, vol. 33(4), pages 2958-2967.
    • Handle: RePEc:ebl:ecbull:eb-13-00488
    as

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    References listed on IDEAS

    as
    1. Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
    2. de Fraja, Giovanni & Delbono, Flavio, 1989. "Alternative Strategies of a Public Enterprise in Oligopoly," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 302-311, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Mixed oligopoly; Partial privatization; Geometric approach;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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