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Bertrand Competition In A Mixed Duopoly Market




We present a simple Bertrand competition model with a Hotelling (Economic Journal, Vol. 39 (1929), pp. 41-57) type spatial competition by incorporating the framework of partial privatization developed by Bös (Privatization: A Theoretical Treatment, Oxford, Clarendon Press, 1991). We investigate simultaneous price choice and sequential price choice with respect to fixed locations of firms and show how the degree of privatization of a public firm influences social welfare in a mixed duopoly market. We also analyse sequential price competition with respect to the location choice of firms. Copyright © 2009 The Author. Journal compilation © 2009 Blackwell Publishing Ltd and The University of Manchester.

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  • Yasuo Sanjo, 2009. "Bertrand Competition In A Mixed Duopoly Market," Manchester School, University of Manchester, vol. 77(3), pages 373-397, June.
  • Handle: RePEc:bla:manchs:v:77:y:2009:i:3:p:373-397

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    References listed on IDEAS

    1. Akira Ogawa & Kazuhiko Kato, 2006. "Price Competition in a Mixed Duopoly," Economics Bulletin, AccessEcon, vol. 12(4), pages 1-5.
    2. Cremer, Helmuth & Marchand, Maurice & Thisse, Jacques-Francois, 1991. "Mixed oligopoly with differentiated products," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 43-53, March.
    3. Toshihiro Matsumura & Noriaki Matsushima, 2003. "Mixed Duopoly with Product Differentiation: Sequential Choice of Location," Australian Economic Papers, Wiley Blackwell, vol. 42(1), pages 18-34, March.
    4. Yuanzhu Lu, 2006. "Hotelling's Location Model in Mixed Duopoly," Economics Bulletin, AccessEcon, vol. 8(1), pages 1-10.
    5. repec:ebl:ecbull:v:12:y:2006:i:4:p:1-5 is not listed on IDEAS
    6. repec:ebl:ecbull:v:18:y:2007:i:2:p:1-11 is not listed on IDEAS
    7. Hikaru Ogawa & Yasuo Sanjo, 2007. "Location Of Public Firm In The Presence Of Multinational Firm: A Mixed Duopoly Approach ," Australian Economic Papers, Wiley Blackwell, vol. 46(2), pages 191-203, June.
    8. Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
    9. Toshihiro Matsumura & Noriaki Matsushima, 2004. "Endogenous Cost Differentials between Public and Private Enterprises: A Mixed Duopoly Approach," Economica, London School of Economics and Political Science, vol. 71(284), pages 671-688, November.
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    Cited by:

    1. Eleftheriou, Konstantinos & Michelacakis, Nickolas, 2017. "Spatial Price Discrimination and Privatization on Vertically Related Markets," MPRA Paper 76964, University Library of Munich, Germany.
    2. Rupayan Pal, 2010. "How much should you own? Cross-ownership and privatization," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2010-015, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Gutierrez-Hita, Carlos & Martinez-Sanchez, Francisco, 2013. "Environmental Policy to Foster a Green Differentiated Energy Market," MPRA Paper 47263, University Library of Munich, Germany.
    4. Mitra, Manipushpak & Pal, Rupayan & Paul, Arindam & Sharada, P.M., 2017. "Equilibrium co-existence of public and private firms and the plausibility of price competition," MPRA Paper 81802, University Library of Munich, Germany.
    5. Miguel González-Maestre & Francisco Martínez-Sánchez, 2014. "The role of platform quality and publicly owned platforms in the free-to-air broadcasting industry," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(1), pages 105-124, March.
    6. Martínez-Sánchez, Francisco, 2014. "Privatization Policies by National and Regional Governments," MPRA Paper 58836, University Library of Munich, Germany.

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