The nexus of market concentration and privatization policy in mixed oligopoly

Su-Ying Hsu, Chu-Ping Lo and Shih-Jye Wu

Economic Modelling, 2014, vol. 38, issue C, 196-203

Abstract: We analyze the nexus of privatization policy and market concentration ratio in a mixed oligopoly where one public enterprise competes against n private firms with asymmetric costs. It is shown that the nexus of privatization policy and market concentration ratio is highly sensitive to the curvature of the market demand. When the market demand is concave (convex) to the origin, a higher concentration ratio leads to a higher (smaller) degree of privatization; whereas in the case of linear demand, the privatization ratio is independent of market concentration ratio.

Keywords: Privatization policy; Mixed oligopoly; Market concentration; Nonlinear demand (search for similar items in EconPapers)
JEL-codes: L13 L32 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:38:y:2014:i:c:p:196-203

DOI: 10.1016/j.econmod.2013.12.025

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