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Mixed Oligopoly, Privatization, and Strategic Trade Policy

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  • Debashis Pal
  • Mark D. White

Abstract

This paper investigates the effects of privatization in the presence of strategic trade policies within an international mixed oligopoly serving a single market. If the government uses a domestic production subsidy, then welfare is always increased with privatization, while the optimal subsidy falls. If the government uses an import tariff, privatization increases welfare over much of the parameter space. The optimal tariff, however, may rise or fall.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 65 (1998)
Issue (Month): 2 (October)
Pages: 264-281

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Handle: RePEc:sej:ancoec:v:65:2:y:1998:p:264-281

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Web page: http://www.southerneconomic.org/
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