Partial privatization in price-setting mixed duopoly
AbstractThis paper investigates a price-setting mixed model involving a private firm and a public firm to reassess the welfare effect of partial privatization. First, the government chooses the level of privatization to maximize social welfare. Second, observing the level of privatization, the firms non-cooperatively choose prices. The paper then demonstrates that partial privatization is not an optimal choice for the government.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 30 (2010)
Issue (Month): 1 ()
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Price-setting duopoly; Partial privatization; Mixed model;
Find related papers by JEL classification:
- L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
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- Prabal Roy chowdhury, 2009. "Mixed Oligopoly with Distortions: First Best with Budget-balance and the Irrelevance Principle," Economics Bulletin, AccessEcon, vol. 29(3), pages 1873-1888.
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