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Mixed Oligopoly In A Single International Market

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  • ALI DADPAY
  • JOHN S. HEYWOOD

Abstract

This paper departs from previous literature by considering a mixed oligopoly with two countries each with public and private firms competing in a single market. This differs from the traditional framework of examining a single domestic market in which foreign and domestic firms compete and is motivated, in part, by international airline markets but serves to characterise many markets. The resulting equilibrium emphasises that the strategic interaction of the two public firms usually serves to reduce welfare. Thus, the usual reason to imagine a public firm in a mixed oligopoly, to enhance welfare, is lost when such firms compete in the interest of their respective countries. Copyright Blackwell Publishing Ltd/University of Adelaide and Flinders University 2006..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Australian Economic Papers.

Volume (Year): 45 (2006)
Issue (Month): 4 (December)
Pages: 269-280

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Handle: RePEc:bla:ausecp:v:45:y:2006:i:4:p:269-280

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X

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Cited by:
  1. Alessandra Chirco & Marcella Scrimitore, 2010. "Price Competition in International Mixed Oligopolies," Working Paper Series 48_10, The Rimini Centre for Economic Analysis.
  2. Toshihiro Matsumura & Noriaki Matsushima & Ikuo Ishibashi, 2009. "Privatization and entries of foreign enterprises in a differentiated industry," Journal of Economics, Springer, vol. 98(3), pages 203-219, December.
  3. Hiroaki Ino & Toshihiro Matsumura, 2009. "What role should public enterprises play in free-entry markets?," Discussion Paper Series 46, School of Economics, Kwansei Gakuin University, revised Jun 2009.
  4. Leonard Wang & Tai-Liang Chen, 2010. "Do cost efficiency gap and foreign competitors matter concerning optimal privatization policy at the free entry market?," Journal of Economics, Springer, vol. 100(1), pages 33-49, May.
  5. Ming Lin & Toshihiro Matsumura, 2012. "Presence of foreign investors in privatized firms and privatization policy," Journal of Economics, Springer, vol. 107(1), pages 71-80, September.
  6. Wang, Leonard F.S. & Chen, Tai-Liang, 2011. "Mixed oligopoly, optimal privatization, and foreign penetration," Economic Modelling, Elsevier, vol. 28(4), pages 1465-1470, July.
  7. John Heywood & Guangliang Ye, 2010. "Optimal privatization in a mixed duopoly with consistent conjectures," Journal of Economics, Springer, vol. 101(3), pages 231-246, November.
  8. John S. Heywood & Guangliang Ye, 2009. "Delegation in a mixed oligopoly: the case of multiple private firms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 71-82.

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