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Spatial competition in a mixed duopoly with one partially nationalized firm

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  • Kumar, Ashutosh
  • Saha, Bibhas

Abstract

This paper analyzes the effects of partial public ownership on product differentiation and social welfare in the framework of a mixed duopoly with spatial competition. It shows that unless the public ownership exceeds a critical level, maximal differentiation continues to hold and social welfare does not improve. However, both the critical level of ownership and the marginal effect of ownership on welfare vary between different types of the partially public firm, where the types relate to different decision making mechanisms. Next, when the partially public firm has higher production cost, it responds to nationalization less vigorously than the private firm. Journal of Comparative Economics 36 (2) (2008) 326-341.

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  • Kumar, Ashutosh & Saha, Bibhas, 2008. "Spatial competition in a mixed duopoly with one partially nationalized firm," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 326-341, June.
  • Handle: RePEc:eee:jcecon:v:36:y:2008:i:2:p:326-341
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    Cited by:

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    4. Juan Carlos Bárcena-Ruiz & María Begoña Garzón, 0. "Partial privatization in an international mixed oligopoly under product differentiation," Journal of Economics, Springer, vol. 0, pages 1-24.
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    6. Wang, Leonard F.S. & Chen, Tai-Liang, 2011. "Mixed oligopoly, optimal privatization, and foreign penetration," Economic Modelling, Elsevier, vol. 28(4), pages 1465-1470, July.
    7. Toshihiro Matsumura & Daisuke Shimizu, 2010. "Privatization Waves," Manchester School, University of Manchester, vol. 78(6), pages 609-625, December.
    8. Francisco Martínez-Sánchez & Miguel González-Maestre, 2010. "The role of program quality and publicly-owned platforms in the free to air broadcasting industry," Working Papers. Serie AD 2010-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    9. Lyu, Yuanzhen & Shuai, Jie, 2017. "Mixed duopoly with foreign firm and subcontracting," International Review of Economics & Finance, Elsevier, vol. 49(C), pages 58-68.
    10. Jie Shuai, 2017. "Mixed Duopoly with a Partial-Delegated-Public Firm," Manchester School, University of Manchester, vol. 85(3), pages 339-356, June.
    11. Eleftheriou, Konstantinos & Michelacakis, Nickolas, 2017. "Spatial Price Discrimination and Privatization on Vertically Related Markets," MPRA Paper 76964, University Library of Munich, Germany.
    12. Eleftheriou, Konstantinos & Michelacakis, Nickolas, 2015. "A Unified Model of Spatial Price Discrimination," MPRA Paper 66557, University Library of Munich, Germany.
    13. Rupayan Pal, 2010. "How Much Should You Own? Cross-ownership and Privatization," Working Papers id:2810, eSocialSciences.
    14. 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.
    15. Arghya Ghosh & Manipushpak Mitra & Bibhas Saha, 2015. "Privatization, Underpricing, and Welfare in the Presence of Foreign Competition," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(3), pages 433-460, June.
    16. Bibhas Saha, 2009. "Mixed ownership in a mixed duopoly with differentiated products," Journal of Economics, Springer, vol. 98(1), pages 25-43, September.
    17. Martínez-Sánchez, Francisco, 2014. "Privatization Policies by National and Regional Governments," MPRA Paper 58836, University Library of Munich, Germany.
    18. Rupayan Pal & Bibhas Saha, 2011. "Environmental outcomes in a model of mixed duopoly," University of East Anglia Applied and Financial Economics Working Paper Series 030, School of Economics, University of East Anglia, Norwich, UK..
    19. Chen, Chien-Hsun & Mai, Chao-Cheng & Liu, Yu-Lin & Mai, Shin-Ying, 2009. "Privatization and optimal share release in the Chinese banking industry," Economic Modelling, Elsevier, vol. 26(6), pages 1161-1171, November.
    20. Bibhas Saha & Rudra Sensarma, 2013. "State ownership, credit risk and bank competition: a mixed oligopoly approach," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 6(1), pages 1-13, March.
    21. Arup Bose & Debashis Pal & David E. M. Sappington, 2014. "The impact of public ownership in the lending sector," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(4), pages 1282-1311, November.
    22. Juan Bárcena Ruiz & F. Casado-Izaga & Hamid Hamoudi, 2014. "Optimal zoning of a mixed duopoly," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 141-153, January.
    23. 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.

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