International Trade and Strategic Privatization

Juan Carlos Bárcena Ruiz and María Begoña Garzón San Felipe
Authors registered in the RePEc Author Service: Juan Carlos Bárcena-Ruiz

No 1134-8984, BILTOKI from Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística)

Abstract: The literature on mixed oligopoly does not consider that there is strategic interaction between governments when they decide whether to privatize their public firms. In order to analyze this quetion we consider two countries; In each country there is one public firm and n private firms. Firms have a constant marginal cost of production and the public firm is less efficient than the private firms. In this framework, we show that when the marginal cost of the public firms takes an intermediate value only one government privatizes its public firm and that government obtains a lower social welfare than the other.

Keywords: international trade; public firms; privatization (search for similar items in EconPapers)
Date: 2001-03
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Citations: View citations in EconPapers (1)

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Journal Article: International Trade and Strategic Privatization (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ehu:biltok:5764

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Dpto. de Econometría y Estadística, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

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