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Mixed Oligopoly, Privatization, and Strategic Trade Policy

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Listed:
  • Debashis Pal
  • Mark D. White

Abstract

This paper investigates the effects of privatization in the presence of strategic trade policies within an international mixed oligopoly serving a single market. If the government uses a domestic production subsidy, then welfare is always increased with privatization, while the optimal subsidy falls. If the government uses an import tariff, privatization increases welfare over much of the parameter space. The optimal tariff, however, may rise or fall.

Suggested Citation

  • Debashis Pal & Mark D. White, 1998. "Mixed Oligopoly, Privatization, and Strategic Trade Policy," Southern Economic Journal, Southern Economic Association, vol. 65(2), pages 264-281, October.
  • Handle: RePEc:sej:ancoec:v:65:2:y:1998:p:264-281
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    References listed on IDEAS

    as
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