Partial privatization in price-setting mixed duopoly

Kazuhiro Ohnishi ()
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Kazuhiro Ohnishi: Institute for Basic Economic Science, Japan

Economics Bulletin, 2010, vol. 30, issue 1, 309-314

Abstract: This paper investigates a price-setting mixed model involving a private firm and a public firm to reassess the welfare effect of partial privatization. First, the government chooses the level of privatization to maximize social welfare. Second, observing the level of privatization, the firms non-cooperatively choose prices. The paper then demonstrates that partial privatization is not an optimal choice for the government.

Keywords: Price-setting duopoly; Partial privatization; Mixed model (search for similar items in EconPapers)
JEL-codes: L3 (search for similar items in EconPapers)
Date: 2010-01-28
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Citations: View citations in EconPapers (11)

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