Partial Privatization of State Holding Corporations

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

IKERLANAK from Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I

Abstract: We consider a state holding corporation with two plants that may produce complement or substitute goods and that compete with one or two private firms. We find that the government partially privatizes the two plants of the state holding corporation and is indifferent between selling them partially to a single investor or to different investors. However, in the former case the government retains a greater (lower) stake in the state corporation if goods are substitutes (complements).

Keywords: partial; privatization; state; holding; corporation; multiproduct; firms; oligopoly (search for similar items in EconPapers)
Date: 2016-06
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Dpto. de Fundamentos del Análisis Económico I, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

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