Mixed Oligopoly, Subsidization And The Order Of Firm's Moves: The Relevance Of Privatization

Topics:
Organization
Tags:
Elsevier,
Government,
Leadership,
Management,
Oligopoly,
Privatization
Source:
Elsevier

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Overview: A series of previous papers demonstrate that there are no consequences from privatization in a mixed oligopoly when the government uses a subsidy to ensure first best. This conclusion depends upon the assumption that privatization results in a simultaneous move oligopoly. If instead privatization results in a public leader becoming a private leader, the optimal subsidy, output and welfare are all reduced.

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Format: PDF | Size: 83KB | Date: Dec 2003 | Pages: 6

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