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Public monopoly, mixed oligopoly and productive efficiency: a generalization

Author

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  • Susumu Cato

    (Graduate School of Economics, The University of Tokyo)

Abstract

The paper considers a cost-reducing investment by the public sector. We compare the investment in the public monopoly to that in the mixed oligopoly. Without specifications of the demand and cost functions, we show that the investment in the public monopoly is higher thanthat in the mixed oligopoly. Our result is a generalization of the result of Nishimori and Ogawa (2002), which investigate the effects of deregulation on the public sector's investment by assuming the linear demand and linear cost functions.

Suggested Citation

  • Susumu Cato, 2008. "Public monopoly, mixed oligopoly and productive efficiency: a generalization," Economics Bulletin, AccessEcon, vol. 12(24), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-08l30003
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume12/EB-08L30003A.pdf
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    References listed on IDEAS

    as
    1. Chrisafis H. Iordanoglou, 2001. "Public Enterprise Revisited," Books, Edward Elgar Publishing, number 2180.
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    3. Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
    4. Toshihiro Matsumura & Noriaki Matsushima, 2004. "Endogenous Cost Differentials between Public and Private Enterprises: A Mixed Duopoly Approach," Economica, London School of Economics and Political Science, vol. 71(284), pages 671-688, November.
    5. Ishibashi, Ikuo & Matsumura, Toshihiro, 2006. "R&D competition between public and private sectors," European Economic Review, Elsevier, vol. 50(6), pages 1347-1366, August.
    6. Nishimori, Akira & Ogawa, Hikaru, 2002. "Public Monopoly, Mixed Oligopoly and Productive Efficiency," Australian Economic Papers, Wiley Blackwell, vol. 41(2), pages 185-190, June.
    7. Poyago-Theotoky, Joanna, 1998. "R&D Competition in a Mixed Duopoly under Uncertainty and Easy Imitation," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 415-428, September.
    8. Glenn C. Loury, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 395-410.
    9. 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.
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    Cited by:

    1. Saha, Souresh, 2014. "Firm's objective function and product and process R&D," Economic Modelling, Elsevier, vol. 36(C), pages 484-494.
    2. repec:ebl:ecbull:v:12:y:2008:i:33:p:1-5 is not listed on IDEAS
    3. Susumu Cato, 2008. "Mixed oligopoly, productive efficiency, and spillover," Economics Bulletin, AccessEcon, vol. 12(33), pages 1-5.

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    More about this item

    Keywords

    state-owned public firm;

    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • L0 - Industrial Organization - - General

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