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Endogenous Role in Mixed Markets: A Two-Production-Period Model

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  • Toshihiro Matsumura

    () (Institute of Social Science, University of Tokyo)

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    Abstract

    In this paper, I investigate endogenous roles in a mixed duopoly, where private and state-owned public firms compete, by allowing two production periods. I find that many equilibria exist, including the Cournot-type equilibrium and one Stackelberg-type equilibrium where the public firm becomes the follower. However, another Stackelberg-type equilibrium where the public firm becomes the leader does not exist. If small inventory costs are introduced, the unique equilibrium outcome becomes the Stackelberg type where the public firm is the follower.

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    Bibliographic Info

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

    Volume (Year): 70 (2003)
    Issue (Month): 2 (October)
    Pages: 403-413

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    Handle: RePEc:sej:ancoec:v:70:2:y:2003:p:403-413

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    Web page: http://www.southerneconomic.org/
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    Cited by:
    1. Tamás Balogh & Attila Tasnádi, 2012. "Does timing of decisions in a mixed duopoly matter?," Journal of Economics, Springer, vol. 106(3), pages 233-249, July.
    2. Kazuhiro Ohnishi, 2006. "Investment Decisions in a New Mixed Market," Annals of Economics and Finance, Society for AEF, vol. 7(2), pages 271-281, November.
    3. Li, Changying & Zhang, Jianhu, 2011. "Equilibrium locations in a mixed duopoly with sequential entry in real time," Economic Modelling, Elsevier, vol. 28(3), pages 1211-1218, May.
    4. Rupayan Pal, 2010. "How much should you own? Cross-ownership and privatization," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2010-015, Indira Gandhi Institute of Development Research, Mumbai, India.

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