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Welfare consequence of an asymmetric regulation in a mixed Bertrand duopoly

Author

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  • Matsumura, Toshihiro

Abstract

I investigate an asymmetric duopoly where a public enterprise must supply the demand it faces, while a private enterprise has no such obligation. I show that such an asymmetric regulation yields the first-best outcome (Walrasian equilibrium).

Suggested Citation

  • Matsumura, Toshihiro, 2012. "Welfare consequence of an asymmetric regulation in a mixed Bertrand duopoly," Economics Letters, Elsevier, vol. 115(1), pages 94-96.
  • Handle: RePEc:eee:ecolet:v:115:y:2012:i:1:p:94-96
    DOI: 10.1016/j.econlet.2011.12.004
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    References listed on IDEAS

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    1. Akira Ogawa & Kazuhiko Kato, 2006. "Price Competition in a Mixed Duopoly," Economics Bulletin, AccessEcon, vol. 12(4), pages 1-5.
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    9. Krishnendu Dastidar, 2001. "Collusive outcomes in price competition," Journal of Economics, Springer, vol. 73(1), pages 81-93, February.
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    Cited by:

    1. repec:kap:jeczfn:v:123:y:2018:i:1:d:10.1007_s00712-017-0559-z is not listed on IDEAS
    2. HIGASHIDA Keisaku, 2018. "Subsidies to Public Firms and Competition Modes under a Mixed Duopoly," Discussion papers 18001, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    Supply obligation; Unique pure strategy Bertrand equilibrium; Mixed markets;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • H4 - Public Economics - - Publicly Provided Goods
    • K2 - Law and Economics - - Regulation and Business Law
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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