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Endogenous Timing in a Price-Setting Mixed Oligopoly

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  • Haraguchi, Junichi
  • Hirose, Kosuke

Abstract

We investigate the endogenous order of moves in a price-setting mixed oligopoly model, comprising two private firms and a public firm. We show that sequential moves emerge as the equilibrium in the observable delay game. Specifically, one of the private firms and the public firm set their prices in period 1, and the other private firm does so in period 2, in equilibrium, if their goods are not significantly differentiated. This is a clear contrast to a mixed duopoly where a simultaneous move game is a unique equilibrium. We also discuss a number of extensions and the robustness of our result.

Suggested Citation

  • Haraguchi, Junichi & Hirose, Kosuke, 2018. "Endogenous Timing in a Price-Setting Mixed Oligopoly," MPRA Paper 87285, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:87285
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    References listed on IDEAS

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    3. Susumu Cato & Toshihiro Matsumura, 2012. "Long-Run Effects of Foreign Penetration on Privatization Policies," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(3), pages 444-454, September.
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    5. Hamilton, Jonathan H. & Slutsky, Steven M., 1990. "Endogenous timing in duopoly games: Stackelberg or cournot equilibria," Games and Economic Behavior, Elsevier, vol. 2(1), pages 29-46, March.
    6. John S. Heywood & Xiangting Hu & Guangliang Ye, 2017. "Optimal Partial Privatization with Asymmetric Demand Information," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 173(2), pages 347-375, June.
    7. Pal, Debashis, 1998. "Endogenous timing in a mixed oligopoly," Economics Letters, Elsevier, vol. 61(2), pages 181-185, November.
    8. Matsumura, Toshihiro & Ogawa, Akira, 2012. "Price versus quantity in a mixed duopoly," Economics Letters, Elsevier, vol. 116(2), pages 174-177.
    9. Sang-Ho Lee & Toshihiro Matsumura & Susumu Sato, 2018. "An analysis of entry-then-privatization model: welfare and policy implications," Journal of Economics, Springer, vol. 123(1), pages 71-88, January.
    10. Ming Lin & Toshihiro Matsumura, 2012. "Presence of foreign investors in privatized firms and privatization policy," Journal of Economics, Springer, vol. 107(1), pages 71-80, September.
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    12. repec:adr:anecst:y:1994:i:33:p:06 is not listed on IDEAS
    13. Toshihiro Matsumura, 2003. "Stackelberg Mixed Duopoly with a Foreign Competitor," Bulletin of Economic Research, Wiley Blackwell, vol. 55(3), pages 275-287, July.
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    Cited by:

    1. Lee, Ki-Dong & Choi, Kangsik & Lee, DongJoon, 2020. "Endogenous Timing in a Mixed Duopoly with Vertically Related Markets," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 61(1), pages 60-88, June.

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    More about this item

    Keywords

    Mixed Markets; Endogenous Timing; Stackelberg;
    All these keywords.

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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