Should Public Sectors Be Complements of Private Sectors?
We discuss competition between high-quality private service providers that maximize their own profits and a low-quality public service provider that maximizes social surplus. Two heterogeneous consumer groups exist: those who demand only high-quality services and those who care little whether services are high- or low-quality. The setting reflects the fact that some consumers feel dissatisfaction with public service providers. We show that, under certain conditions, social welfare is smaller when there is a public service provider than when there is not. The result holds even though the efficiency of the public service is equal to that of the private services.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 168 (2012)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: http://www.mohr.de/jite|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gary Biglaiser & Ching-to Albert Ma, 2006.
"Moonlighting: Public Service and Private Practice,"
12, Portuguese Competition Authority.
- Gary Biglaiser & Ching-to Albert Ma, 2006. "Moonlighting: Public Service and Private Practice," Boston University - Department of Economics - Working Papers Series WP2006-015, Boston University - Department of Economics.
- Glazer, Amihai & Niskanen, Esko, 1992.
"Why voters may prefer congested public clubs,"
University of California Transportation Center, Working Papers
qt16j5s39d, University of California Transportation Center.
- Glazer, A. & Niskanen, E., 1990. "Why Voters May Prefer Congested Public Clubs," Papers 90-91-18, California Irvine - School of Social Sciences.
- Glazer, Amihai & Niskanen, Esko, 1992. "Why Voters May Prefer Congested Public Clubs," University of California Transportation Center, Working Papers qt9vk9r6zm, University of California Transportation Center.
- Glazer, Amihai & Niskanen, Esko, 2001. "Why voters may prefer congested public clubs," University of California Transportation Center, Working Papers qt2rm6x4kc, University of California Transportation Center.
- Anderson, Simon P. & de Palma, Andre & Thisse, Jacques-Francois, 1997.
"Privatization and efficiency in a differentiated industry,"
European Economic Review,
Elsevier, vol. 41(9), pages 1635-1654, December.
- Anderson, S.P. & de Palma, A. & Thisse, J.F., 1995. "Privatization and Efficiency in a Differentiated Industry," Papers 9505, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- ANDERSON, S. P. & de PALMA, A. & THISSE, J.-F., . "Privatization and efficiency in a differentiated industry," CORE Discussion Papers RP -1298, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- ANDERSON, Simon & de PALMA, André & THISSE, Jacques-François, 1996. "Privatization and Efficiency in a Differentiated Industry," CORE Discussion Papers 1996045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- de Palma, André & Thisse, Jacques-François, 1995. "Privatization and Efficiency in a Differentiated Industry," CEPR Discussion Papers 1136, C.E.P.R. Discussion Papers.
- Gauthier, Bernard & Wane, Waly, 2011.
"Bypassing health providers: The quest for better price and quality of health care in Chad,"
Social Science & Medicine,
Elsevier, vol. 73(4), pages 540-549, August.
- Gauthier, Bernard & Wane, Waly, 2008. "Bypassing health providers : the quest for better price and quality of health care in Chad," Policy Research Working Paper Series 4462, The World Bank.
- Lorenz NETT, 1993. "Mixed Oligopoly With Homogeneous Goods," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 64(3), pages 367-393, 07.
- Poyago-Theotoky, Joanna, 1998. "R&D Competition in a Mixed Duopoly under Uncertainty and Easy Imitation," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 415-428, September.
- Ikuo Ishibashi & Noriaki Matsushima, 2009. "The Existence of Low-End Firms May Help High-End Firms," Marketing Science, INFORMS, vol. 28(1), pages 136-147, 01-02.
- Kurt R. Brekke & Lars Sørgard, 2006.
"Public versus Private Health Care in a National Health Service,"
CESifo Working Paper Series
1679, CESifo Group Munich.
- Kurt R. Brekke & Lars S�rgard, 2007. "Public versus private health care in a national health service," Health Economics, John Wiley & Sons, Ltd., vol. 16(6), pages 579-601.
- Yuanzhu Lu, 2005.
"Endogenous Timing in a Mixed Oligopoly with Foreign Competitors: the Linear Demand Case,"
CEMA Working Papers
506, China Economics and Management Academy, Central University of Finance and Economics.
- Yuanzhu Lu, 2006. "Endogenous Timing in a Mixed Oligopoly with Foreign Competitors: the Linear Demand Case," Journal of Economics, Springer, vol. 88(1), pages 49-68, June.
- Pal, Debashis, 1998. "Endogenous timing in a mixed oligopoly," Economics Letters, Elsevier, vol. 61(2), pages 181-185, November.
- Pedro Pita Barros & Pau Olivella, 2005.
"Waiting Lists and Patient Selection,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 14(3), pages 623-646, 09.
- Pau Olivella Cunill & Pedro Pita Barros, 2000. "Waiting Lists and Patient Selection," Econometric Society World Congress 2000 Contributed Papers 0283, Econometric Society.
- Pedro Pita Barros & Pau Olivella, . "Waiting Lists And Patient Selection," UFAE and IAE Working Papers 444.99, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Barros, Pedro Luis Pita, 2000. "Waiting Lists and Patient Selection," CEPR Discussion Papers 2519, C.E.P.R. Discussion Papers.
- 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.
- Yuanzhu Lu & Sougata Poddar, 2007. "Firm Ownership, Product Differentiation And Welfare," Manchester School, University of Manchester, vol. 75(2), pages 210-217, 03.
- Pedro P. Barras & Xavier Martinez-Giralt, .
"Public And Private Provision Of Healtch Care,"
UFAE and IAE Working Papers
438.99, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Ishibashi, Ikuo & Matsumura, Toshihiro, 2006. "R&D competition between public and private sectors," European Economic Review, Elsevier, vol. 50(6), pages 1347-1366, August.
- Rickman, Neil & McGuire, Alistair, 1999. "Regulating Providers' Reimbursement in a Mixed Market for Health Care," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(1), pages 53-71, February.
- de Fraja, Giovanni & Delbono, Flavio, 1989. "Alternative Strategies of a Public Enterprise in Oligopoly," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 302-11, April.
- Li, Changying, 2006. "Location choice in a mixed oligopoly," Economic Modelling, Elsevier, vol. 23(1), pages 131-141, January.
- Matsushima, Noriaki & Matsumura, Toshihiro, 2006.
"Mixed oligopoly, foreign firms, and location choice,"
Regional Science and Urban Economics,
Elsevier, vol. 36(6), pages 753-772, November.
- Noriaki Matsushima & Toshihiro Matsumura, 2005. "Mixed Oligopoly, Foreign Firms, and Location Choice," Discussion Papers 2005-21, Kobe University, Graduate School of Business Administration.
- Kenneth L. Leonard & Gilbert R. Mliga & Damen Haile Mariam, 2002. "Bypassing Health Centres in Tanzania: Revealed Preferences for Quality," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 11(4), pages 441-471, December.
- Toshihiro Matsumura, 2003. "Stackelberg Mixed Duopoly with a Foreign Competitor," Bulletin of Economic Research, Wiley Blackwell, vol. 55(3), pages 275-287, 07.
- Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
When requesting a correction, please mention this item's handle: RePEc:mhr:jinste:urn:sici:0932-4569(201212)168:4_712:spsbco_2.0.tx_2-. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.