Necessarily welfare-improving privatization

Kenji Fujiwara ()

No 130, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper examines the welfare effect of privatization in a mixed oligopoly model where multiple oligopolistic industries compete for a common factor. We find that privatization necessarily improves welfare in a benchmark case with symmetric costs across all oligopolistic industries. Moreover, we show that a production subsidy necessarily reduces welfare regardless of the level of privatization.

Keywords: Mixed oligopoly; privatization; subsidization; general equilibrium (search for similar items in EconPapers)
JEL-codes: L13 L32 L33 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2015-07, Revised 2015-07
New Economics Papers: this item is included in nep-com
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http://192.218.163.163/RePEc/pdf/kgdp130.pdf First version, 2015 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:130

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