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A Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences

Author

Listed:
  • Hend Ghazzai

    (UR MASE - Modélisation et Analyse Statistique et Economique - ESSAIT - Ecole Supérieure de la Statistique et de l'Analyse de l'Information - UCAR - Université de Carthage (Tunisie))

  • Wided Hemissi
  • Rim Lahmandi-Ayed

    (UR MASE - Modélisation et Analyse Statistique et Economique - ESSAIT - Ecole Supérieure de la Statistique et de l'Analyse de l'Information - UCAR - Université de Carthage (Tunisie))

  • Sana Mami Kefi

Abstract

This note extends the results already obtained by Khaloul et al. (2017) on the majority vote between monopoly and duopoly by a heterogeneous population composed of individuals who are potentially consumers, workers, and shareholders to the general case where firms are owned by a given proportion of the population. Results show that duopoly is preferred when non-shareholders constitute a majority of the population. Otherwise, the majority vote depends on the relative dispersion of the individuals with respect to their intensity of preference for quality and their sensitivity to effort.

Suggested Citation

  • Hend Ghazzai & Wided Hemissi & Rim Lahmandi-Ayed & Sana Mami Kefi, 2021. "A Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences," Post-Print hal-02480175, HAL.
    • Handle: RePEc:hal:journl:hal-02480175
    Note: View the original document on HAL open archive server: https://hal.science/hal-02480175v2
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    References listed on IDEAS

    as
    1. Gabszewicz, J. & Turrini, A., 2000. "Workers' skills, product quality and industry equilibrium," International Journal of Industrial Organization, Elsevier, vol. 18(4), pages 575-593, May.
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    More about this item

    Keywords

    Imperfect Competition; Democracy; Vertical Differentiation; General Equilibrium;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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