How much should you own? Cross-ownership and privatization
This paper examines the interdependence of cross-ownership and level of privatization in case of differentiated products mixed duopoly. It shows that it is optimal for the private firm not to own any (own the entire) portion of the privatized share of its rival firm, if the level of privatization is very low (very high). In equilibrium, the government makes sure that cross-ownership is not attracted. However, in most of the situations, the possibility of cross-ownership adversely affects the prospect of privatization. Results of this paper have strong implications to antitrust regulations and divestment policies.
|Date of creation:||Sep 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (022) 840 0919/20/21
Fax: (022) 840 2752/2026
Web page: http://www.igidr.ac.in
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.:
- A. Brandão & S. Castro, 2007. "State-owned enterprises as indirect instruments of entry regulation," Journal of Economics, Springer, vol. 92(3), pages 263-274, December.
- Yasuo Sanjo, 2009. "Bertrand Competition In A Mixed Duopoly Market," Manchester School, University of Manchester, vol. 77(3), pages 373-397, 06.
- 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.
- 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).
- 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., . "Privatization and efficiency in a differentiated industry," CORE Discussion Papers RP -1298, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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..
- de Palma, André & Thisse, Jacques-François, 1995. "Privatization and Efficiency in a Differentiated Industry," CEPR Discussion Papers 1136, C.E.P.R. Discussion Papers.
- Juan Carlos Bárcena-Ruiz & María Begoña Garzón, 2003.
"Mixed Duopoly, Merger and Multiproduct Firms,"
Journal of Economics,
Springer, vol. 80(1), pages 27-42, 08.
- Inés Macho-Stadler & Thierry Verdier, 1991.
"Strategic managerial incentives and cross ownership structure: A note,"
Journal of Economics,
Springer, vol. 53(3), pages 285-297, October.
- Macho, I. & Verdier, T., 1989. "Strategic Managerial Incentives and Cross Ownership Structure: A Note," DELTA Working Papers 89-02, DELTA (Ecole normale supérieure).
- Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
- Alley, Wilson A, 1997. "Partial Ownership Arrangements and Collusion in the Automobile Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 191-205, June.
- White, Mark D., 2001. "Managerial incentives and the decision to hire managers in markets with public and private firms," European Journal of Political Economy, Elsevier, vol. 17(4), pages 877-896, November.
- Roy Chowdhury, Prabal, 2009. "Mixed Duopoly with Price Competition," MPRA Paper 9220, University Library of Munich, Germany.
- Fershtman, Chaim, 1990. "The Interdependence between Ownership Status and Market Structure: The Case of Privatization," Economica, London School of Economics and Political Science, vol. 57(227), pages 319-28, August.
- Heywood, John S. & McGinty, Matthew, 2011.
"Cross-border mergers in a mixed oligopoly,"
Elsevier, vol. 28(1-2), pages 382-389, January.
- repec:ebl:ecbull:v:30:y:2010:i:1:p:309-314 is not listed on IDEAS
- Kazuhiro Ohnishi, 2010. "A Three-Stage International Mixed Duopoly With A Wage-Rise Contract As A Strategic Commitment," Manchester School, University of Manchester, vol. 78(4), pages 279-289, 07.
- Hoernig, Steffen H., 2002. "Mixed Bertrand equilibria under decreasing returns to scale: an embarrassment of riches," Economics Letters, Elsevier, vol. 74(3), pages 359-362, February.
- 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.
- Juan Carlos Bárcena-Ruiz & Maria Bego�A Garzón, 2010. "Endogenous Timing In A Mixed Duopoly With Capacity Choice," Manchester School, University of Manchester, vol. 78(2), pages 93-109, 03.
- Yoshio Kamijo & Yasuhiko Nakamura, 2009. "Stable market structures from merger activities in mixed oligopoly with asymmetric costs," Journal of Economics, Springer, vol. 98(1), pages 1-24, September.
- Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
- Debashis Pal & Mark White, 2003. "Intra-Industry Trade And Strategic Trade Police In The Presence of Public Firms," International Economic Journal, Taylor & Francis Journals, vol. 17(4), pages 29-41.
- Toshihiro Matsumura & Osamu Kanda, 2005. "Mixed Oligopoly at Free Entry Markets," Journal of Economics, Springer, vol. 84(1), pages 27-48, 02.
- Pal, Debashis, 1998. "Endogenous timing in a mixed oligopoly," Economics Letters, Elsevier, vol. 61(2), pages 181-185, November.
- Dietzenbacher, Erik & Smid, Bert & Volkerink, Bjorn, 2000. "Horizontal integration in the Dutch financial sector," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1223-1242, December.
- Toshihiro Matsumura, 2003. "Endogenous Role in Mixed Markets: A Two-Production-Period Model," Southern Economic Journal, Southern Economic Association, vol. 70(2), pages 403-413, October.
- Maw, James, 2002. "Partial privatization in transition economies," Economic Systems, Elsevier, vol. 26(3), pages 271-282, September.
- 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.
- Barros, Fatima, 1995. "Incentive schemes as strategic variables: An application to a mixed duopoly," International Journal of Industrial Organization, Elsevier, vol. 13(3), pages 373-386, September.
- Dastidar, Krishnendu Ghosh, 1995. "On the Existence of Pure Strategy Bertrand Equilibrium," Economic Theory, Springer, vol. 5(1), pages 19-32, January.
- Bibhas Saha, 2009. "Mixed ownership in a mixed duopoly with differentiated products," Journal of Economics, Springer, vol. 98(1), pages 25-43, September.
- 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.
- 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.
- John S. Heywood & Guangliang Ye, 2009. "Partial Privatization In A Mixed Duopoly With An R&D Rivalry," Bulletin of Economic Research, Wiley Blackwell, vol. 61(2), pages 165-178, 04.
When requesting a correction, please mention this item's handle: RePEc:ind:igiwpp:2010-015. 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: (Shamprasad M. Pujar)
If references are entirely missing, you can add them using this form.