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Mixed duopoly in quantity competition under the optimal privatization rate

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  • Kojun Hamada

    (Faculty of Economics, Niigata University)

Abstract

This study examines a mixed duopoly in differentiated products in which a partially privatized firm and a private firm simultaneously or sequentially compete in quantity after the government sets the optimal degree of privatization for the partially privatized firm. Comparing the social welfare when the timing of decision making is different, we present the following results. First, social welfare in Cournot equilibrium is equal to that in the Stackelberg equilibrium when a partially privatized firm is the leader. Second, social welfare is the largest in the Stackelberg equilibrium when a partially privatized firm is the follower.

Suggested Citation

  • Kojun Hamada, 2020. "Mixed duopoly in quantity competition under the optimal privatization rate," Economics Bulletin, AccessEcon, vol. 40(1), pages 689-698.
    • Handle: RePEc:ebl:ecbull:eb-20-00078
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    References listed on IDEAS

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    1. Hamilton, Jonathan H. & Slutsky, Steven M., 1990. "Endogenous timing in duopoly games: Stackelberg or cournot equilibria," Games and Economic Behavior, Elsevier, vol. 2(1), pages 29-46, March.
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    6. Koji Ishibashi & Toyokazu Kaneko, 2008. "Partial privatization in mixed duopoly with price and quality competition," Journal of Economics, Springer, vol. 95(3), pages 213-231, December.
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    8. Pal, Debashis, 1998. "Endogenous timing in a mixed oligopoly," Economics Letters, Elsevier, vol. 61(2), pages 181-185, November.
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    Cited by:

    1. Kojun Hamada, 2021. "Mixed duopoly in price competition under the optimal privatization rate," Economics Bulletin, AccessEcon, vol. 41(3), pages 1282-1291.

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    More about this item

    Keywords

    mixed duopoly; partial privatization; quantity competition; Stackelberg equilibrium;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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