Partial Privatization, Foreign Competition, and Tariffs Ranking

Leonard Wang () and Jen-yao Lee ()
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Jen-yao Lee: Department of International Business, National Kaohsiung University of Applied Science

Economics Bulletin, 2010, vol. 30, issue 3, 2405-2412

Abstract: This paper compares the optimal tariff and revenue maximizing tariffs in the presence of partial privatization. We show that in an international mixed oligopoly with asymmetric costs and partial privatization, when the marginal cost of the privatized firm exceeds a critical value, maximum -revenue tariff is higher than optimum-welfare tariff. Otherwise, optimum-welfare tariff is higher than maximum-revenue tariff. In addition, associating with the market-opening policy, the domestic government should accelerate privatization path and impose a lower welfare-optimum tariff rate.

Keywords: mixed oligopoly; partial privatization; tariff ranking (search for similar items in EconPapers)
JEL-codes: F1 L2 (search for similar items in EconPapers)
Date: 2010-09-16
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Citations: View citations in EconPapers (10)

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