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Partial Privatization of State Holding Corporations


  • Quan Dong
  • Juan Carlos Bárcena†Ruiz
  • María Begoña Garzón


We consider a state holding corporation with two plants that may produce complementary or substitute goods and that competes with one or two private firms. We find that the government partially privatizes the two plants of the state holding corporation and is indifferent between selling them partially to a single investor and to different investors. However, in the former case the government retains a greater (smaller) stake in the state corporation if goods are substitutes (complements).

Suggested Citation

  • Quan Dong & Juan Carlos Bárcena†Ruiz & María Begoña Garzón, 2018. "Partial Privatization of State Holding Corporations," Manchester School, University of Manchester, vol. 86(1), pages 119-138, January.
  • Handle: RePEc:bla:manchs:v:86:y:2018:i:1:p:119-138

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