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Unionized Mixed Oligopoly and Privatization with Excess Burden of Taxation

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  • Choi, Kangsik

Abstract

By introducing the excess burden of taxation into unionized mixed and privatized oligopolies, we show that (i) if the government that maximizes social welfare values with a small weight of excess burden of taxation, privatization matters regardless of the number of firms; however, (ii) when the degree of excess burden of taxation lies within a relatively large range, the results of both desirable privatization and nationalization materialize depending on the critical value of the excess burden of taxation. In contrast to the existing works on mixed oligopoly, we find privatization can enhance social welfare regardless of the number of firms, under mild conditions.

Suggested Citation

  • Choi, Kangsik, 2013. "Unionized Mixed Oligopoly and Privatization with Excess Burden of Taxation," MPRA Paper 51156, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51156
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    References listed on IDEAS

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    More about this item

    Keywords

    Excess Burden of Taxation; Mixed Oligopoly; Privatization; Union.;
    All these keywords.

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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