A Mixed Oligopoly Where Private Firms Survive Welfare Maximisation

Johan Willner ()

Journal of Industry, Competition and Trade, 2006, vol. 6, issue 3, 235-251

Abstract: Conventional models of a mixed oligopoly usually predict modest welfare improvements, because they are based on assumptions of increasing marginal costs and/or relative inefficiency in the public firm. Both assumptions can be questioned, but it is well known that the private firms would otherwise exit. This contribution shows that public and private firms can coexist in a welfare-improving mixed oligopoly without such assumptions, even in the limited case where (almost) only consumer benefits matter, if welfare is defined through a multiplicative function where also the distribution of payoffs matter. Output then corresponds to a hypothetical free-entry equilibrium, but with less duplication of fixed costs. Copyright Springer Science + Business Media, LLC 2006

Keywords: mixed oligopoly; welfare maximisation; cost efficiency; L32; L33; L44; H42 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10842-006-8429-3 (text/html)
Access to full text is restricted to subscribers.

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:kap:jincot:v:6:y:2006:i:3:p:235-251

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/10842/PS2

DOI: 10.1007/s10842-006-8429-3

Access Statistics for this article

Journal of Industry, Competition and Trade is currently edited by Karl Aiginger, Marcel Canoy and Michael Peneder

More articles in Journal of Industry, Competition and Trade from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().