Public Options and Altruistic Firms - Antitrust Targets or Tools? The Welfare Impact of a Mixed Oligopoly With Managerial firms
AbstractI analyse the welfare impact of a mixed market with a public or private firm with some degree of altruism, in the presence of an agency problem. Contrary to some earlier findings, the total surplus turns out to be increasing in the degree of altruism. This impact is stronger than if there is no agency problem, despite more stringent conditions for the market to remain mixed. The altruistic firm is more cost-efficient, and viable if the market can remain mixed. A competition policy that encourages entry may increase welfare, but its scope is reduced by higher altruism.
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Bibliographic InfoPaper provided by Aboa Centre for Economics in its series Discussion Papers with number 59.
Date of creation: Sep 2010
Date of revision:
non-profit maximising firms; public firms; mixed oligopoly; competition policy;
Find related papers by JEL classification:
- L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
- L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-11 (All new papers)
- NEP-BEC-2010-12-11 (Business Economics)
- NEP-COM-2010-12-11 (Industrial Competition)
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