Efficiency and Privatisation in Imperfectly Competitive Industries
AbstractIf a public firm is managed less efficiently than private producers facing similar conditions, then privatization will increase the overall efficiency of the industry and benefit society. This paper challenges this apparently innocuous conclusion. As long as the private firms' efficiency improves as a result of competition, then it will also be higher when they are subjected to "unfair" competition from a public oligopolist with no budget constraint. The author shows that it may happen that the loss inefficiency due to the relatively inefficient public firm is more than compensated by gains in the efficiency of the private firms. Copyright 1991 by Blackwell Publishing Ltd.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Industrial Economics.
Volume (Year): 39 (1991)
Issue (Month): 3 (March)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- ANDERSON, Simon & de PALMA, André & THISSE, Jacques-François, 1996.
"Privatization and Efficiency in a Differentiated Industry,"
CORE Discussion Papers
1996045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Anderson, Simon P. & de Palma, Andre & Thisse, Jacques-Francois, 1997. "Privatization and efficiency in a differentiated industry," European Economic Review, Elsevier, vol. 41(9), pages 1635-1654, December.
- de Palma, André & Thisse, Jacques-François, 1995. "Privatization and Efficiency in a Differentiated Industry," CEPR Discussion Papers 1136, C.E.P.R. Discussion Papers.
- Anderson, S.P. & de Palma, A. & Thisse, J.F., 1995. "Privatization and Efficiency in a Differentiated Industry," Papers 9505, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- ANDERSON, S. P. & de PALMA, A. & THISSE, J.-F., . "Privatization and efficiency in a differentiated industry," CORE Discussion Papers RP -1298, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- L. Lambertini & A. Tampieri, 2010. "Corporate Social Responsibility in a Mixed Oligopoly," Working Papers wp723, Dipartimento Scienze Economiche, Universita' di Bologna.
- Gertjan Driessen & Mark Lijesen & Machiel Mulder, 2006. "The impact of competition on productive efficiency in European railways," CPB Discussion Paper 71, CPB Netherlands Bureau for Economic Policy Analysis.
- Johan Willner, 2006. "A Mixed Oligopoly Where Private Firms Survive Welfare Maximisation," Journal of Industry, Competition and Trade, Springer, vol. 6(3), pages 235-251, December.
- Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003.
"An assessment of telecommunications reform in developing countries,"
Information Economics and Policy,
Elsevier, vol. 15(4), pages 443-466, December.
- Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2002. "An assessment of telecommunications reform in developing countries," Policy Research Working Paper Series 2909, The World Bank.
- Filippo Belloc & Antonio Nicita & Pier Luigi Parcu, 2011. "Deregulating Telecommunications in Europe: Timing, Path-Dependency, and Institutional Complementarities," RSCAS Working Papers 2011/47, European University Institute.
- Kangsik, Choi, 2009. "Endogenous Timing with Government's Preference and Privatization," MPRA Paper 13844, University Library of Munich, Germany.
- Jorge Pinilla & Joaquim Vergés, 2007. "Efectos De La Privatización En La Eficiencia De Iberia Líneas Aéreas De España S.A," Revista Economía y Administración, Facultad de Ciencias Económicas y Administrativas, Universidad de Concepción, vol. 69, pages 7-38, December.
- Johan Willner, 2010. "Public Options and Altruistic Firms - Antitrust Targets or Tools? The Welfare Impact of a Mixed Oligopoly With Managerial firms," Discussion Papers 59, Aboa Centre for Economics.
- Chalil, Diana, 2008. "Market power and subsidies in the Indonesian palm oil industry," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6022, Australian Agricultural and Resource Economics Society.
- Yue Shen & Youjun Xu & Jingming Hao, 2011. "Strategic incentive in mixed oligopoly," Frontiers of Economics in China, Springer, vol. 6(2), pages 311-326, June.
- Choi, Kangsik, 2009. "Government's Preference and Timing of Endogenous Wage Setting: Perspectives on Privatization and Mixed Duopoly," MPRA Paper 17221, University Library of Munich, Germany.
- Chen, Chien-Hsun & Mai, Chao-Cheng & Liu, Yu-Lin & Mai, Shin-Ying, 2009. "Privatization and optimal share release in the Chinese banking industry," Economic Modelling, Elsevier, vol. 26(6), pages 1161-1171, November.
- Eduardo Saavedra, . "Alternative Institutional Arrangements in Network Utilities: An Incomplete Contracting Approach," ILADES-Georgetown University Working Papers inv116, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
- Anthony E. Boardman & Claude Laurin & Mark A. Moore & Aidan R. Vining, 2009. "A Cost-Benefit Analysis of the Privatization of Canadian National Railway," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 59-83, March.
- George C. Bitros, 2003. "Firm Ownership and Economic Efficiency," Microeconomics 0303002, EconWPA.
- Urs Meister, 2005. "Do welfare maximising water utilities maximise welfare under common carriage?," Others 0505001, EconWPA.
- Willner, Johan, 1999. "Policy objectives and performance in a mixed market with bargaining," International Journal of Industrial Organization, Elsevier, vol. 17(1), pages 137-145, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.