IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v118y2013i2p324-326.html
   My bibliography  Save this article

Privatization neutrality theorem revisited

Author

Listed:
  • Matsumura, Toshihiro
  • Okumura, Yasunori

Abstract

Fjell and Heywood (2004) show that privatization is not necessarily welfare neutral in mixed oligopolies under a production subsidy if firms move sequentially. We find that the neutrality holds for any time structure if instead an output floor is introduced.

Suggested Citation

  • Matsumura, Toshihiro & Okumura, Yasunori, 2013. "Privatization neutrality theorem revisited," Economics Letters, Elsevier, vol. 118(2), pages 324-326.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:324-326
    DOI: 10.1016/j.econlet.2012.11.028
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176512006180
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2012.11.028?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kato, Kazuhiko & Tomaru, Yoshihiro, 2007. "Mixed oligopoly, privatization, subsidization, and the order of firms' moves: Several types of objectives," Economics Letters, Elsevier, vol. 96(2), pages 287-292, August.
    2. Joanna Poyago-Theotoky, 2001. "Mixed oligopoly, subsidization and the order of firms' moves: an irrelevance result," Economics Bulletin, AccessEcon, vol. 12(3), pages 1-5.
    3. repec:ebl:ecbull:v:12:y:2006:i:5:p:1-6 is not listed on IDEAS
    4. De Fraja, Gianni & Iossa, Elisabetta, 1998. "Price Caps and Output Floors: A Comparison of Simple Regulatory Rules," Economic Journal, Royal Economic Society, vol. 108(450), pages 1404-1421, September.
    5. Toshihiro Matsumura & Daisuke Shimizu, 2010. "Privatization Waves," Manchester School, University of Manchester, vol. 78(6), pages 609-625, December.
    6. Yoshihiro Tomaru & Masayuki Saito, 2010. "Mixed Duopoly, Privatization And Subsidization In An Endogenous Timing Framework," Manchester School, University of Manchester, vol. 78(1), pages 41-59, January.
    7. Maria José Gil-Moltó & Joanna Poyago-Theotoky & Vasileios Zikos, 2011. "R&D Subsidies, Spillovers, and Privatization in Mixed Markets," Southern Economic Journal, John Wiley & Sons, vol. 78(1), pages 233-255, July.
    8. Gareth Myles & Hassan Khodavaisi & Nigar Hashimzade, 2007. "An irrelevance result with differentiated goods," Economics Bulletin, AccessEcon, vol. 8(2), pages 1-7.
    9. Yoshihiro Tomaru, 2006. "Mixed Oligopoly, Partial Privatization and Subsidization," Economics Bulletin, AccessEcon, vol. 12(5), pages 1-6.
    10. White, Mark D., 1996. "Mixed oligopoly, privatization and subsidization," Economics Letters, Elsevier, vol. 53(2), pages 189-195, November.
    11. Maria José Gil-Moltó & Joanna Poyago-Theotoky & Vasileios Zikos, 2011. "R&D Subsidies, Spillovers, and Privatization in Mixed Markets," Southern Economic Journal, John Wiley & Sons, vol. 78(1), pages 233-255, July.
    12. Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
    13. Fjell, Kenneth & Heywood, John S., 2004. "Mixed oligopoly, subsidization and the order of firm's moves: the relevance of privatization," Economics Letters, Elsevier, vol. 83(3), pages 411-416, June.
    14. repec:ebl:ecbull:v:8:y:2007:i:2:p:1-7 is not listed on IDEAS
    15. Matsumura, Toshihiro & Ogawa, Akira, 2012. "Price versus quantity in a mixed duopoly," Economics Letters, Elsevier, vol. 116(2), pages 174-177.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Ming Hsin & Matsumura, Toshihiro, 2017. "Optimal Privatization and Uniform Subsidy Policies: A Synthesis," MPRA Paper 77285, University Library of Munich, Germany.
    2. Scrimitore, Marcella, 2014. "Quantity competition vs. price competition under optimal subsidy in a mixed oligopoly," Economic Modelling, Elsevier, vol. 42(C), pages 166-176.
    3. Jiaqi Chen & Sang-Ho Lee & Timur K. Muminov, 2021. "Welfare-reducing discriminatory output subsidies with mixed ownership and R&D," Economics Bulletin, AccessEcon, vol. 41(3), pages 1592-1602.
    4. Lee, Sang-Ho & Muminov, Timur K. & Tomaru, Yoshihiro, 2017. "Partial Privatization And Subsidization In A Mixed Duopoly: R&D Versus Output Subsidies," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 58(2), pages 163-177, December.
    5. Wang F.S., Leonard & Chen, Tai-Liang, 2011. "Privatization, Efficiency Gap, and Subsidization with Excess Taxation Burden," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 52(1), pages 55-68, June.
    6. Marcella Scrimitore, 2012. "Quantity Competition vs. Price Competition under Optimal Subsidy in a Mixed Duopoly," EERI Research Paper Series EERI_RP_2012_15, Economics and Econometrics Research Institute (EERI), Brussels.
    7. Kojun Hamada, 2018. "Privatization Neutrality Theorem: When a Public Firm Pursues General Objectives," The Japanese Economic Review, Springer, vol. 69(1), pages 59-68, March.
    8. Garcia, Arturo & Leal, Mariel & Lee, Sang-Ho, 2018. "A new irrelevance result in an endogenous timing with a consumer-friendly public firm," MPRA Paper 85648, University Library of Munich, Germany.
    9. Yoshihiro Tomaru & Masayuki Saito, 2010. "Mixed Duopoly, Privatization And Subsidization In An Endogenous Timing Framework," Manchester School, University of Manchester, vol. 78(1), pages 41-59, January.
    10. Toshihiro Matsumura & Yoshihiro Tomaru, 2013. "Mixed duopoly, privatization, and subsidization with excess burden of taxation," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(2), pages 526-554, May.
    11. Lee, Sang-Ho & Tomaru, Yoshihiro, 2017. "Output and R&D subsidies in a mixed oligopoly," MPRA Paper 84410, University Library of Munich, Germany.
    12. Xu, Lili & Lee, Sang-Ho & Wang, Leonard, 2017. "Strategic Trade and Privatization Policies in Bilateral Mixed Markets," MPRA Paper 80340, University Library of Munich, Germany.
    13. 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.
    14. Kosuke Hirose & Toshihiro Matsumura, 2019. "Comparing welfare and profit in quantity and price competition within Stackelberg mixed duopolies," Journal of Economics, Springer, vol. 126(1), pages 75-93, January.
    15. Matsumura Toshihiro & Okumura Yasunori, 2017. "Privatization Neutrality Theorem in Free Entry Markets," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 17(2), pages 1-9, June.
    16. Maria Jose Gil-Molto & Dimitrios Varvarigos, 2014. "Environmental Investments in Mixed vs Private Oligopoly: What are the Implications of Privatization?," Discussion Papers in Economics 14/15, Division of Economics, School of Business, University of Leicester.
    17. Kato, Kazuhiko & Tomaru, Yoshihiro, 2007. "Mixed oligopoly, privatization, subsidization, and the order of firms' moves: Several types of objectives," Economics Letters, Elsevier, vol. 96(2), pages 287-292, August.
    18. Toshihiro Matsumura & Akira Ogawa, 2010. "On The Robustness Of Private Leadership In Mixed Duopoly," Australian Economic Papers, Wiley Blackwell, vol. 49(2), pages 149-160, June.
    19. Horn-In Kuo & Fu-Chuan Lai & K. L. Glen Ueng, 2020. "Privatization neutrality with quality and subsidies," The Japanese Economic Review, Springer, vol. 71(3), pages 405-419, July.
    20. Shoji Haruna & Rajeev K. Goel, 2017. "Output subsidies in mixed oligopoly with research spillovers," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 41(2), pages 235-256, April.

    More about this item

    Keywords

    Minimum quantity regulation; Mixed oligopolies; Stackelberg; Cournot; Irrelevance results;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:324-326. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.