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Partial privatization in price-setting mixed duopoly

Author

Listed:
  • Kazuhiro Ohnishi

    (Institute for Basic Economic Science, Japan)

Abstract
This paper investigates a price-setting mixed model involving a private firm and a public firm to reassess the welfare effect of partial privatization. First, the government chooses the level of privatization to maximize social welfare. Second, observing the level of privatization, the firms non-cooperatively choose prices. The paper then demonstrates that partial privatization is not an optimal choice for the government.

Suggested Citation

  • Kazuhiro Ohnishi, 2010. "Partial privatization in price-setting mixed duopoly," Economics Bulletin, AccessEcon, vol. 30(1), pages 309-314.
    • Handle: RePEc:ebl:ecbull:eb-09-00472
    as

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    References listed on IDEAS

    as
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    14. repec:bla:ausecp:v:41:y:2002:i:3:p:267-81 is not listed on IDEAS
    15. Prabal Roy chowdhury, 2009. "Mixed Oligopoly with Distortions: First Best with Budget-balance and the Irrelevance Principle," Economics Bulletin, AccessEcon, vol. 29(3), pages 1873-1888.
    16. Nandini Gupta, 2005. "Partial Privatization and Firm Performance," Journal of Finance, American Finance Association, vol. 60(2), pages 987-1015, April.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ohnishi, Kazuhiro, 2020. "Price-setting mixed duopoly, partial privatisation and subsidisation," MPRA Paper 104063, University Library of Munich, Germany.
    2. Manipushpak Mitra & Rupayan Pal & Arindam Paul & P. M. Sharada, 2020. "Equilibrium Coexistence of Public and Private Firms and the Plausibility of Price Competition," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 176(2), pages 217-242.
    3. Marcella Scrimitore, 2014. "Profitability under Commitment in Cournot and Bertrand Mixed Markets," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 170(4), pages 684-703, December.
    4. Scrimitore, Marcella, 2011. "Profitability in Cournot and Bertrand Mixed Markets under Endogenous Objectives," MPRA Paper 35643, University Library of Munich, Germany.
    5. Paul, Arindam & De, Parikshit, 2022. "Reversal of Bertrand-Cournot Ranking for Optimal Privatization Level," MPRA Paper 116272, University Library of Munich, Germany, revised 10 Feb 2023.
    6. Ohnishi, Kazuhiro, 2021. "Pollution, partial privatization and the effect of ambient charges," MPRA Paper 106319, University Library of Munich, Germany.
    7. Ohnishi, Kazuhiro, 2024. "Pollution, partial privatization and the effect of ambient charges: price competition," MPRA Paper 120531, University Library of Munich, Germany.
    8. Corrado Benassi & Alessandra Chirco & Marcella Scrimitore, 2014. "Optimal manipulation rules in a mixed oligopoly," Journal of Economics, Springer, vol. 112(1), pages 61-84, May.
    9. Ohnishi, Kazuhiro, 2021. "Pollution, partial privatization and the effect of ambient charges," MPRA Paper 109592, University Library of Munich, Germany, revised 04 Sep 2021.
    10. Akio Kawasaki, 2023. "Pricing Strategies and Partial Privatization Policy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 62(3), pages 293-319, May.
    11. Corrado Benassi & Alessandra Chirco & Marcella Scrimitore, 2011. "Optimal Manipulation Rules in a Mixed Duopoly," Working Paper series 43_11, Rimini Centre for Economic Analysis.

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    More about this item

    Keywords

    Price-setting duopoly; Partial privatization; Mixed model;
    All these keywords.

    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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