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Mixed oligopoly, productive efficiency, and spillover

Author

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  • Susumu Cato

    (Graduate School of Economics, The University of Tokyo)

Abstract

The purpose of this paper is to examine the public sector's cost-reducing investment when there exists the effect of R&D spillover. We show that the investment in the mixed oligopoly is not higher than that in the public monopoly. When the cost-reducing effect of investment for each firm is the same, the investment in the mixed oligopoly is equal to that in the public monopoly. In such a case, the emergence of private firms has a positive impact on social welfare. Our model is an extended version of Nishimori and Ogawa (2002), which study the R&D investment by the public sector.

Suggested Citation

  • Susumu Cato, 2008. "Mixed oligopoly, productive efficiency, and spillover," Economics Bulletin, AccessEcon, vol. 12(33), pages 1-5.
    • Handle: RePEc:ebl:ecbull:eb-08l30005
    as

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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume12/EB-08L30005A.pdf
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    References listed on IDEAS

    as
    1. Susumu Cato, 2008. "Public monopoly, mixed oligopoly and productive efficiency: a generalization," Economics Bulletin, AccessEcon, vol. 12(24), pages 1-7.
    2. repec:ebl:ecbull:v:12:y:2008:i:24:p:1-7 is not listed on IDEAS
    3. Suzumura, Kotaro, 1992. "Cooperative and Noncooperative R&D in an Oligopoly with Spillovers," American Economic Review, American Economic Association, vol. 82(5), pages 1307-1320, December.
    4. Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
    5. Toshihiro Matsumura & Osamu Kanda, 2005. "Mixed Oligopoly at Free Entry Markets," Journal of Economics, Springer, vol. 84(1), pages 27-48, February.
    6. Ishibashi, Ikuo & Matsumura, Toshihiro, 2006. "R&D competition between public and private sectors," European Economic Review, Elsevier, vol. 50(6), pages 1347-1366, August.
    7. repec:bla:ausecp:v:41:y:2002:i:2:p:185-90 is not listed on IDEAS
    8. Akira Nishimori & Hikaru Ogawa, 2002. "Public Monopoly, Mixed Oligopoly and Productive Efficiency," Australian Economic Papers, Wiley Blackwell, vol. 41(2), pages 185-190, June.
    9. de Fraja, Giovanni & Delbono, Flavio, 1989. "Alternative Strategies of a Public Enterprise in Oligopoly," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 302-311, April.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Jianhu Zhang & Changying Li, 2013. "Endogenous R&D spillover and location choice in a mixed oligopoly," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 459-477, October.
    2. Saha, Souresh, 2014. "Firm's objective function and product and process R&D," Economic Modelling, Elsevier, vol. 36(C), pages 484-494.
    3. Levin, Mark (Левин, Марк) & Matrosova, K. (Матросова, К.), 2016. "Research, Modeling and Process Management Dissemination of Innovations in Socio-Economic Systems [Исследование, Моделирование И Управление Процессами Распространения Инноваций В Социально-Экономиче," Working Papers 1443, Russian Presidential Academy of National Economy and Public Administration.

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    More about this item

    Keywords

    state-owned public firm;

    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • L0 - Industrial Organization - - General

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