Governments and Producers in Multinational Markets: A Mixed Oligopoly Analysis

Ali Dadpay

Applied Economics Quarterly (formerly: Konjunkturpolitik), 2010, vol. 56, issue 3, 211-230

Abstract: This paper extends the existing mixed oligopoly analysis by studying the case where governments do not have the same attitude toward producers’ surplus in a multinational market. It demonstrates that governments’ emphasis on profitability might discourage them from joining a coordinated privatization process with the other governments. Thus the governments do not always face a prisoners’ dilemma in privatizing their national firms as suggested previously. It also demonstrates that private sector increases its production when governments appreciate producers’ surplus more than consumers’.

Keywords: mixed oligopoly; producers’ surplus; multinational markets (search for similar items in EconPapers)
JEL-codes: L13 L32 (search for similar items in EconPapers)
Date: 2010
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