EconPapers    
Economics at your fingertips  
 

Mixed duopoly in price competition under the optimal privatization rate

Kojun Hamada

Economics Bulletin, 2021, vol. 41, issue 3, 1282-1291

Abstract: This study examines social welfare in a mixed duopoly in differentiated products in which a partially privatized firm and a private firm simultaneously or sequentially compete in price after the government sets the optimal degree of privatization for the partially privatized firm. Comparing social welfare when the timing of decision making is different, we present the following results. When the degree of substitutability of goods is low, social welfare in the Stackelberg equilibrium is the largest when a partially privatized firm is the leader. By contrast, when the degree is high, the social welfare in the Bertrand equilibrium is the largest. Unlike the results presented in quantity competition, the Stackelberg equilibrium when a partially privatized firm is the follower never achieves the largest social welfare.

Keywords: mixed duopoly; partial privatization; price competition; Stackelberg equilibrium (search for similar items in EconPapers)
JEL-codes: D4 L2 (search for similar items in EconPapers)
Date: 2021-09-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P108.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-21-00828

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2022-08-28
Handle: RePEc:ebl:ecbull:eb-21-00828