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Governments and Producers in Multinational Markets: A Mixed Oligopoly Analysis

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  • Ali Dadpay

Abstract

This paper extends the existing mixed oligopoly analysis by studying the case where governments do not have the same attitude toward producers’ surplus in a multinational market. It demonstrates that governments’ emphasis on profitability might discourage them from joining a coordinated privatization process with the other governments. Thus the governments do not always face a prisoners’ dilemma in privatizing their national firms as suggested previously. It also demonstrates that private sector increases its production when governments appreciate producers’ surplus more than consumers’.

Suggested Citation

  • Ali Dadpay, 2010. "Governments and Producers in Multinational Markets: A Mixed Oligopoly Analysis," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(3), pages 211-230.
  • Handle: RePEc:aeq:aeqaeq:v56_y2010_i2_q2_p211-230
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    Citations

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    Cited by:

    1. Ali Dadpay, 2017. "Domestic Policies as Strategic Measures in Multinational Markets," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(1), pages 1-9, January.
    2. repec:hit:hitjcm:v:56:y:2015:i:1:p:135-154 is not listed on IDEAS
    3. Xu, Lili & Lee, Sang-Ho, 2015. "Strategic Privatization With Tariffs And Environmental Taxes In An International Mixed Duopoly," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 56(1), pages 135-154, June.

    More about this item

    Keywords

    mixed oligopoly; producers’ surplus; multinational markets;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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