LOCATION OF PUBLIC FIRM IN THE PRESENCE OF MULTINATIONAL FIRM: A MIXED DUOPOLY APPROACH*

Hikaru Ogawa and Yasuo Sanjo

Australian Economic Papers, 2007, vol. 46, issue 2, 191-203

Abstract: By incorporating a multinational private firm into the mixed duopoly model with Hotelling‐type spatial competition, we show that the private firm's nationality is a matter of the public firm's location. As the share of foreign capital increases in the private (multinational) firm, the public firm moves to a central place. The effects of price regulation and sequential location choice are also discussed.

Date: 2007
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