Income, demand and privatization

Corrado Benassi (), Alessandra Chirco and Caterina Colombo
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Corrado Benassi: Alma Mater Sudiorum - Università di Bologna
Alessandra Chirco: Università del Salento
Caterina Colombo: Università degli Studi di Ferrara

Journal of Economics, 2025, vol. 145, issue 2, No 2, 129-145

Abstract: Abstract The question raised in this paper is whether and how some core features of income distribution, e.g. the income levels or income inequality, should be relevant in the decision to privatize public firms. The paper provides a first answer in the framework of mixed oligopoly theory. In particular, we show that the scope for privatization is widened when the market is poorer, and when incomes become more concentrated. These unexpected results are accounted for in terms of the way distributional shocks alter the allocative inefficiency of imperfectly competitive markets.

Keywords: Mixed oligopoly; Income distribution; Privatization; L13; L32; H44 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:145:y:2025:i:2:d:10.1007_s00712-025-00899-w

DOI: 10.1007/s00712-025-00899-w

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