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General Analysis of Cournot Mixed Oligopoly with Partial Privatization

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  • Koji Okuguchi

Abstract

A general model of Cournot mixed oligopoly with partial privatization of a public firm is formulated, and the existence and stability of a unique equilibrium and optimality of partial privatization are proved under fundamental assumptions allowing for general inverse market demand and firm’ cost functions. The stability condition which is derived on the basis of a stability theorem for a dynamic system for an aggregative game is interpreted from economic point of view for some simple cases, and is specified for Cournot mixed duopoly with partial privatization. The stability condition is also compared with the one for Cournot oligopoly with only private firms. Copyright Eurasia Business and Economics Society 2012

Suggested Citation

  • Koji Okuguchi, 2012. "General Analysis of Cournot Mixed Oligopoly with Partial Privatization," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 2(1), pages 48-62, June.
    • Handle: RePEc:spr:eurase:v:2:y:2012:i:1:p:48-62
    DOI: 10.14208/BF03353832
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    Cited by:

    1. Leonard Wang & Tien-Der Han, 2015. "Better governance matters optimal privatization policy," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 189-206, December.
    2. Koji Okuguchi & Takeshi Yamazaki, 2018. "Existence of Unique Equilibrium in Cournot Mixed Oligopoly," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-13, September.
    3. Klaus Kultti & Tuomas Takalo & Tanja Tanayama, 2015. "R&D spillovers and information exchange: a case study," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 63-76, June.
    4. Takeshi Yamazaki, 2016. "On the Works of Professor Koji Okuguchi," Springer Series in Game Theory, in: Pierre von Mouche & Federico Quartieri (ed.), Equilibrium Theory for Cournot Oligopolies and Related Games, pages 7-13, Springer.

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    More about this item

    Keywords

    Mixed Oligopoly; Public Firm; Partial Privatization; Equilibrium; L13; D43; H32;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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