Mixed Duopoly with Product Differentiation: Sequential Choice of Location

Toshihiro Matsumura and Noriaki Matsushima

Australian Economic Papers, 2003, vol. 42, issue 1, 18-34

Abstract: We investigate the sequential choice of location in a mixed duopoly, where a welfare–maximising public firm competes against a profit–maximising private firm. We examine the desirable role of the public firm in a mixed market. We also consider the effect of price regulation. We find that the public firm should become the follower (leader) if a price regulation is (is not) imposed. We also find that neither price regulation nor privatisation of the public firm improves welfare.

Date: 2003
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Citations: View citations in EconPapers (47)

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