Sepahvand, Mehrdad and Cornes, Richard (2005): Mixed Oligopoly, privatization and strategic trade policy: a note.
Download (242kB) | Preview
In debates over privatization and global competition mixed Cournot oligopoly models have been used to show that the presence of a state-owned enterprise in the host country is always associated with a distortionary effect that may justify privatization even if the public firm is just as efficient as its private counterparts. This study argues that this result is valid only under Cournot competition and Cournot competition is not a plausible modelling assumption in this context because in this type of market the firms’ simultaneous play strategies lack credibility.
|Item Type:||MPRA Paper|
|Original Title:||Mixed Oligopoly, privatization and strategic trade policy: a note|
|Keywords:||Privatization; Mixed oligopoly; Strategic Trade Policy|
|Subjects:||L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L33 - Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out
D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection
|Depositing User:||Mehrdad Sepahvand|
|Date Deposited:||03. Jun 2007|
|Last Modified:||12. Feb 2013 20:39|
1. Bhagwati, J. 1987, Essays in International Economic Theory, MIT Press. 2. Brander, J. 1995, Strategic Trade Policy, National Bureau of Economic Research Working Paper No. 5020. 3. Fjell, K. and J.S. Heywood, 2004, Mixed oligopoly, subsidization and the order of firm’s moves: the relevance of privatization, Economics Letters, 83, 411-416. 4. Fjell, K. and D. Pal, 1996, A Mixed Oligopoly in the Presence of Foreign Private Firms, Canadian Journal of Economics, 29, 737-743. 5. Hamilton, J. and S. Slutsky 1990, Endogenous Timing in Duopoly Games: Stackelberg or Cournot Equilibria, Games and Economic Behavior, 2, 29-49. 6. Matsumara, T. 2003, Stackelberg Mixed Duopoly with Foreign Firm, Bulletin of Economic Research, 55(3), 275-287. 7. Merrill, W. and N. Schneider, 1966, Government firms in oligopoly industries: a short run analysis, Quarterly Journal of Economics, 80, 400-412 8. Pal, D., 1998, Endogenous timing in a mixed oligopoly, Economics Letters, 61, 181-185 9. Pal, D. and M. White, 1998, Mixed Oligopoly, Privatization, and Strategic Trade Policy, Southern Economic Journal, 65(2), 264-281.