Mixed Oligopoly, privatization and strategic trade policy: a note

Mehrdad Sepahvand and Richard Cornes

MPRA Paper from University Library of Munich, Germany

Abstract: In debates over privatization and global competition mixed Cournot oligopoly models have been used to show that the presence of a state-owned enterprise in the host country is always associated with a distortionary effect that may justify privatization even if the public firm is just as efficient as its private counterparts. This study argues that this result is valid only under Cournot competition and Cournot competition is not a plausible modelling assumption in this context because in this type of market the firms’ simultaneous play strategies lack credibility.

Keywords: Privatization; Mixed oligopoly; Strategic Trade Policy (search for similar items in EconPapers)
JEL-codes: D43 L33 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (1)

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