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Optimal nationalization policy in a heterogeneous mixed oligopoly

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  • Junlong Chen
  • Chaoqun Sun
  • Ruiyu He
  • Yibing Zhang
  • Jiali Liu

Abstract

This study constructs a mixed oligopoly model considering product differentiation, the proportion of state‐owned shares, the efficiency gap, and the reform cost, investigates market equilibrium under different competition modes, and discusses the optimal proportion of state‐owned shares. Product differentiation, the proportion of state‐owned shares, and reform costs have complex impacts on the equilibrium results. Complete, partial, and no nationalization may be optimal under certain conditions. The competition mode affects welfare distribution among stakeholders. The government should decide on an optimal nationalization policy according to specific conditions and the market environment.

Suggested Citation

  • Junlong Chen & Chaoqun Sun & Ruiyu He & Yibing Zhang & Jiali Liu, 2023. "Optimal nationalization policy in a heterogeneous mixed oligopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 807-827, March.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:2:p:807-827
    DOI: 10.1002/mde.3713
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