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Partial privatization in price-setting mixed duopoly

Author

Listed:
  • Kazuhiro Ohnishi

    () (Institute for Basic Economic Science, Japan)

Abstract

This paper investigates a price-setting mixed model involving a private firm and a public firm to reassess the welfare effect of partial privatization. First, the government chooses the level of privatization to maximize social welfare. Second, observing the level of privatization, the firms non-cooperatively choose prices. The paper then demonstrates that partial privatization is not an optimal choice for the government.

Suggested Citation

  • Kazuhiro Ohnishi, 2010. "Partial privatization in price-setting mixed duopoly," Economics Bulletin, AccessEcon, vol. 30(1), pages 309-314.
  • Handle: RePEc:ebl:ecbull:eb-09-00472
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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I1-P27.pdf
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    References listed on IDEAS

    as
    1. Kenji Fujiwara, 2007. "Partial Privatization in a Differentiated Mixed Oligopoly," Journal of Economics, Springer, vol. 92(1), pages 51-65, September.
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    7. repec:ebl:ecbull:v:12:y:2006:i:5:p:1-6 is not listed on IDEAS
    8. 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.
    9. Nandini Gupta, 2005. "Partial Privatization and Firm Performance," Journal of Finance, American Finance Association, vol. 60(2), pages 987-1015, April.
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    14. Fjell, Kenneth & Heywood, John S, 2002. "Public Stackelberg Leadership in a Mixed Oligopoly with Foreign Firms," Australian Economic Papers, Wiley Blackwell, vol. 41(3), pages 267-281, September.
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    Cited by:

    1. Corrado Benassi & Alessandra Chirco & Marcella Scrimitore, 2014. "Optimal manipulation rules in a mixed oligopoly," Journal of Economics, Springer, vol. 112(1), pages 61-84, May.
    2. Marcella Scrimitore, 2014. "Profitability under Commitment in Cournot and Bertrand Mixed Markets," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 170(4), pages 684-703, December.
    3. 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.

    More about this item

    Keywords

    Price-setting duopoly; Partial privatization; Mixed model;

    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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