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Competition and Privatization Author info | Abstract | Publisher info | Download info | Related research | Statistics Diaz, A.
Fauli-Oller, R.
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In this paper we study the interaction between privatization and competition (liberalization) in the market. Privatization is understood as a change in the objective of the owners of the firm. A public firm maximizes social welfare and a private firm maximizes profits. We find that this difference in objectives matters less the greater the level of competition because then the behavior of a welfare maximizing firm converges to the behavior of a profit maximizing firm.
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Paper provided by Valencia - Instituto de Investigaciones Economicas in its series Papers with number
99-13.
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Length: 28 pages
Date of creation: 1999Date of revision:
Handle: RePEc:fth:valinv:99-13Contact details of provider: Postal: Instituto Valenciano de InvEstigaciones Economics, C/Guardia Civil, 22, Esc. 2, 1 46020 Valencia (Espana). Phone: +34 96 319 00 50 Fax: +34 96 319 00 55 Email: Web page: http://www.ivie.es/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Thomas Krichel).
Keywords: COMPETITION PRIVATIZATION MARKET STRUCTURE Other versions of this item:
Find related papers by JEL classification: D40 - Microeconomics - - Market Structure and Pricing - - - General L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
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de Palma, André & Thisse, Jacques-François, 1995.
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Other versions:
Anderson, S.P. & de Palma, A. & Thisse, J.F., 1996.
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Papers
9645, Catholique de Louvain - Center for Operations Research and Economics.
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[Downloadable!] (restricted) Fershtman, Chaim, 1990.
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Matsumura, Toshihiro, 1998.
"Partial privatization in mixed duopoly ,"
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Fershtman, Chaim & Judd, Kenneth L, 1987.
"Equilibrium Incentives in Oligopoly ,"
American Economic Review ,
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de Fraja, Giovanni & Delbono, Flavio, 1989.
"Alternative Strategies of a Public Enterprise in Oligopoly ,"
Oxford Economic Papers ,
Oxford University Press, vol. 41(2), pages 302-11, April.
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