Privatizing a service sector: where to start?

Jacek Cukrowski

Prague Economic Papers, 2002, vol. 2002, issue 3, 269-279

Abstract: This paper develops a theoretical framework for the analysis of transformation of the service sector during privatization process. A simple model which includes a supplier of services and retail firms is presented and applied to study the effects of various sequences of privatization. Our findings indicate that privatizing the supplier first is always at least as good as privatizing the retailers first because (unlike the strategy of privatizing the retail firms first) it increases both the number of retail firms and profit of the supplier.

Keywords: privatization; service sector; demand uncertainty; trade in services; retail market (search for similar items in EconPapers)
JEL-codes: D73 (search for similar items in EconPapers)
Date: 2002
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DOI: 10.18267/j.pep.198

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