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

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  • Toshihiro Matsumura

Abstract

In this paper, I investigate endogenous roles in a mixed duopoly, where private and state‐owned public turns compete, by allowing two production periods. I find that many equilibria exist, including the Coumot‐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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  • Toshihiro Matsumura, 2003. "Endogenous Role in Mixed Markets: A Two‐Production‐Period Model," Southern Economic Journal, John Wiley & Sons, vol. 70(2), pages 403-413, October.
    • Handle: RePEc:wly:soecon:v:70:y:2003:i:2:p:403-413
    DOI: 10.1002/j.2325-8012.2003.tb00578.x
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    Cited by:

    1. 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.
    2. Kosuke Hirose & Toshihiro Matsumura, 2019. "Comparing welfare and profit in quantity and price competition within Stackelberg mixed duopolies," Journal of Economics, Springer, vol. 126(1), pages 75-93, January.
    3. Corrado Benassi & Alessandra Chirco & Marcella Scrimitore, 2011. "Optimal Manipulation Rules in a Mixed Duopoly," Working Paper series 43_11, Rimini Centre for Economic Analysis.
    4. 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.
    5. Ming Hsin Lin & Toshihiro Matsumura, 2018. "Optimal Privatisation Policy under Private Leadership in Mixed Oligopolies," Arthaniti: Journal of Economic Theory and Practice, , vol. 17(1), pages 1-14, June.

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