Public Monopoly, Mixed Oligopoly and Productive Efficiency
AbstractIn general, the introduction of competition into the public sector seems to lead to higher cost-efficiency in service production. However, there are examples of substantial cost increases in some areas. In this paper, using a mixed oligopoly model, we investigate the effects of deregulation on the cost-reducing incentives of a public firm. Our results show that a firm that is a public monopoly has greater incentive to conduct cost-reducing investment than a public firm within mixed oligopoly market. Copyright 2002 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Australian Economic Papers.
Volume (Year): 41 (2002)
Issue (Month): 2 (June)
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