Stackelberg mixed duopoly with a partially foreign-owned competitor

Kazuhiro Ohnishi

MPRA Paper from University Library of Munich, Germany

Abstract: An existing study examines an international mixed duopoly involving a state-owned public firm and a foreign private firm, focusing on their timing choices for quantities and showing that the state-owned public firm should act as the leader. This result differs from that for an endogenous-timing mixed duopoly model where a state-owned public firm coexists with a domestic private firm. We investigate the endogenous order of moves in a mixed duopoly model where a state-owned public firm competes with a private firm that is partially foreign-owned. Specifically, we explore the desirable role of the state-owned public firm, either as a leader or a follower, and present the equilibrium outcome of the model. Our findings reveal that the equilibrium differs depending on whether the foreign ownership ratio of the private firm is low or high.

Keywords: Endogenous timing; Mixed oligopoly; Partial foreign ownership; Stackelberg (search for similar items in EconPapers)
JEL-codes: C72 D21 F23 L13 L32 (search for similar items in EconPapers)
Date: 2025-05-02
New Economics Papers: this item is included in nep-com, nep-gth, nep-ind and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:124662

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