Mixed Oligopoly and Entry
We analyze a mixed oligopoly with free entry by private firms. It is assumed that a state-owned enterprise (SOE) maximizes an increasing function of output, subject to a break-even constraint. We first show that, because of instability, the industry cannot contain more than one SOE. Then we establish an irrelevance result: if the SOE's cost disadvantage relative to private firms is not too large, then aggregate output, aggreagte costs and welfare are the same with and without the SOE. However, for this range of cost disadvantage an SOE monopoly yields higher welfare. Implications for privatization policy are suggested.
|Date of creation:||Feb 2012|
|Date of revision:|
|Contact details of provider:|| Postal: CEDI, Brunel University,West London,UB8 3PH,United Kingdom|
Phone: +44 (0)1895 266649
Fax: +44 (0)1895 266649
Web page: http://www.cedi.org.uk
More information through EDIRC
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.:
- Xavier Vives, 2001. "Oligopoly Pricing: Old Ideas and New Tools," MIT Press Books, The MIT Press, edition 1, volume 1, number 026272040x, December.
- Philippe De Donder & John E. Roemer, 2006.
"Mixed Oligopoly Equilibria When Firms' Objectives Are Endogenous,"
Cowles Foundation Discussion Papers
1581, Cowles Foundation for Research in Economics, Yale University.
- De Donder, Philippe & Roemer, John E., 2009. "Mixed oligopoly equilibria when firms' objectives are endogenous," International Journal of Industrial Organization, Elsevier, vol. 27(3), pages 414-423, May.
- De Donder, Philippe & Roemer, John E, 2006. "Mixed Oligopoly Equilibria When Firms' Objectives Are Endogenous," CEPR Discussion Papers 5900, C.E.P.R. Discussion Papers.
- De Donder, Philippe & Roemer, John, 2006. "Mixed Oligopoly Equilibria when Firms' Objectives are Endogenous," IDEI Working Papers 414, Institut d'Économie Industrielle (IDEI), Toulouse.
- Philippe De Donder & John E. Roemer, 2006. "Mixed Oligopoly Equilibria When Firms' Objectives Are Endogenous," Levine's Bibliography 321307000000000436, UCLA Department of Economics.
- Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
- Massimo Florio, 2014. "The return of public enterprise," Working Papers 201401, Centre for Industrial Studies (CSIL).
- Estrin, Saul & de Meza, David, 1995. "Unnatural monopoly," Journal of Public Economics, Elsevier, vol. 57(3), pages 471-488, July.
- de Fraja, Giovanni & Delbono, Flavio, 1990. " Game Theoretic Models of Mixed Oligopoly," Journal of Economic Surveys, Wiley Blackwell, vol. 4(1), pages 1-17.
- Yoshihiro Tomaru & Yasuhiko Nakamura & Masayuki Saito, 2011. "Strategic Managerial Delegation In A Mixed Duopoly With Capacity Choice: Partial Delegation Or Full Delegation," Manchester School, University of Manchester, vol. 79(4), pages 811-838, 07.
When requesting a correction, please mention this item's handle: RePEc:edb:cedidp:12-01. 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: (Sarmistha Pal)
If references are entirely missing, you can add them using this form.