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Spatial competition in a mixed duopoly with one partially nationalized firm

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  • Kumar, Ashutosh
  • Saha, Bibhas
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    Abstract

    This paper analyzes the effects of partial public ownership on product differentiation and social welfare in the framework of a mixed duopoly with spatial competition. It shows that unless the public ownership exceeds a critical level, maximal differentiation continues to hold and social welfare does not improve. However, both the critical level of ownership and the marginal effect of ownership on welfare vary between different types of the partially public firm, where the types relate to different decision making mechanisms. Next, when the partially public firm has higher production cost, it responds to nationalization less vigorously than the private firm. Journal of Comparative Economics 36 (2) (2008) 326-341.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Comparative Economics.

    Volume (Year): 36 (2008)
    Issue (Month): 2 (June)
    Pages: 326-341

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    Handle: RePEc:eee:jcecon:v:36:y:2008:i:2:p:326-341

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    Web page: http://www.elsevier.com/locate/inca/622864

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    Cited by:
    1. 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.
    2. Francisco Martínez-Sánchez & Miguel González-Maestre, 2010. "The role of program quality and publicly-owned platforms in the free to air broadcasting industry," Working Papers. Serie AD 2010-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Rupayan Pal & Bibhas Saha, 2011. "Environmental outcomes in a model of mixed duopoly," University of East Anglia Applied and Financial Economics Working Paper Series 030, School of Economics, University of East Anglia, Norwich, UK..
    4. Juan Bárcena Ruiz & F. Casado-Izaga & Hamid Hamoudi, 2014. "Optimal zoning of a mixed duopoly," The Annals of Regional Science, Springer, vol. 52(1), pages 141-153, January.
    5. Miguel González-Maestre & Francisco Martínez-Sánchez, 2014. "The role of platform quality and publicly owned platforms in the free-to-air broadcasting industry," SERIEs, Spanish Economic Association, vol. 5(1), pages 105-124, March.
    6. Bibhas Saha, 2009. "Mixed ownership in a mixed duopoly with differentiated products," Journal of Economics, Springer, vol. 98(1), pages 25-43, September.
    7. Joaquín Andaluz, 2011. "Validity of the “Principle of Maximum Product Differentiation” in a unionized mixed-duopoly," Journal of Economics, Springer, vol. 102(2), pages 123-136, March.
    8. 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.

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