Juan Carlos Barcena-Ruiz () (Departamento de Fundamentos del Analisis Economico, Universidad del Pais Vasco, Spain) M. Begona Garzon () (Departamento de Fundamentos del Analisis Economico, Universidad del Pais Vasco, Spain)
Abstract
The literature on mixed oligopoly does not consider that there is strategic interaction between governments when they decide whether to privatize their public firms. In order to analyze this quetion we consider two countries; In each country there is one public firm and n private firms. Firms have a constant marginal cost of production and the public firm is less efficient than the private firms. In this framework, we show that when the marginal cost of the public firms takes an intermediate value only one government privatizes its public firm and that government obtains a lower social welfare than the other.
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Paper provided by Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística) in its series BILTOKI with number
200107.
Order Information: Postal: Dpto. de Econometría y Estadística, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain Email:
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Find related papers by JEL classification: L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Juan Carlos Barcena-Ruiz & M. Begona Garzon, 2001.
"Mixed Oligopoly and Environmental Policy,"
BILTOKI
200105, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
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