Multiple Long-Run Equilibria in a Free-Entry Mixed Oligopoly

Junichi Haraguchi and Toshihiro Matsumura

MPRA Paper from University Library of Munich, Germany

Abstract: We investigate a free-entry mixed oligopoly with constant marginal costs. A privatization policy is implemented after private firms enter the market. We find that both full privatization and full nationalization are equilibrium policies, and the former is the worst privatization policy for welfare.

Keywords: entry-then-privatization; constant marginal costs; profit-enhancing entry; two polar equilibrium privatization policies (search for similar items in EconPapers)
JEL-codes: D43 H44 L33 (search for similar items in EconPapers)
Date: 2018-05-14
New Economics Papers: this item is included in nep-com, nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:86704

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