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Mixed duopoly in quantity competition under the optimal privatization rate

Author

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  • Kojun Hamada

    (Faculty of Economics, Niigata University)

Abstract

This study examines a mixed duopoly in differentiated products in which a partially privatized firm and a private firm simultaneously or sequentially compete in quantity after the government sets the optimal degree of privatization for the partially privatized firm. Comparing the social welfare when the timing of decision making is different, we present the following results. First, social welfare in Cournot equilibrium is equal to that in the Stackelberg equilibrium when a partially privatized firm is the leader. Second, social welfare is the largest in the Stackelberg equilibrium when a partially privatized firm is the follower.

Suggested Citation

  • Kojun Hamada, 2020. "Mixed duopoly in quantity competition under the optimal privatization rate," Economics Bulletin, AccessEcon, vol. 40(1), pages 689-698.
    • Handle: RePEc:ebl:ecbull:eb-20-00078
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    References listed on IDEAS

    as
    1. Hamilton, Jonathan H. & Slutsky, Steven M., 1990. "Endogenous timing in duopoly games: Stackelberg or cournot equilibria," Games and Economic Behavior, Elsevier, vol. 2(1), pages 29-46, March.
    2. Ming Lin & Toshihiro Matsumura, 2012. "Presence of foreign investors in privatized firms and privatization policy," Journal of Economics, Springer, vol. 107(1), pages 71-80, September.
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    5. Kojun Hamada, 2016. "Alternative Strategies Of A Public Enterprise In Oligopoly Revisited: An Extension To Stackelberg Competition," Bulletin of Economic Research, Wiley Blackwell, vol. 68(S1), pages 85-96, December.
    6. Koji Ishibashi & Toyokazu Kaneko, 2008. "Partial privatization in mixed duopoly with price and quality competition," Journal of Economics, Springer, vol. 95(3), pages 213-231, December.
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    8. Pal, Debashis, 1998. "Endogenous timing in a mixed oligopoly," Economics Letters, Elsevier, vol. 61(2), pages 181-185, November.
    9. José Naya, 2015. "Endogenous timing in a mixed duopoly model," Journal of Economics, Springer, vol. 116(2), pages 165-174, October.
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    Cited by:

    1. Kojun Hamada, 2021. "Mixed duopoly in price competition under the optimal privatization rate," Economics Bulletin, AccessEcon, vol. 41(3), pages 1282-1291.

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    More about this item

    Keywords

    mixed duopoly; partial privatization; quantity competition; Stackelberg equilibrium;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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