Unionized Mixed Oligopoly and Privatization with Excess Burden of Taxation

Choi, Kangsik (2013): Unionized Mixed Oligopoly and Privatization with Excess Burden of Taxation.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Excess Burden of Taxation, Mixed Oligopoly, Privatization, Union.
• Subjects: H - Public Economics > H4 - Publicly Provided Goods > H44 - Publicly Provided Goods: Mixed Markets; J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J51 - Trade Unions: Objectives, Structure, and Effects; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets

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