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Coopetition in a Mixed Duopoly Market

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  • Duc De NGO
  • Mahito OKURA

Abstract

This study aims to investigate the impact of privatization on the degree of cooperation and competition in a mixed duopoly market. In this market, one semipublic firm and one private firm determine the level of two types of effort: the cooperative effort made to enlarge the total market size and the competitive effort made to increase market share. In a contest framework, our results show that the competitive effort level of the semipublic firm is smaller than that of the private firm. The more the semipublic firm is concerned for social welfare, the less it competes. On the basis of average costs, we then identify the conditions in which only the semipublic firm undertakes cooperative effort while the private firm behaves as a free rider. Besides, contrarily to common belief, our results highlight that a bad level of privatization may favor the most the free rider. Furthermore, we find that the semipublic firm always expends more cooperative effort than does the private firm.
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Suggested Citation

  • Duc De NGO & Mahito OKURA, 2008. "Coopetition in a Mixed Duopoly Market," EcoMod2008 23800095, EcoMod.
    • Handle: RePEc:ekd:000238:23800095
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    References listed on IDEAS

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    Cited by:

    1. Zhu, Zheng & Xu, Ailing & He, Qiao-Chu & Yang, Hai, 2021. "Competition between the transportation network company and the government with subsidies to public transit riders," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    2. Yuanfang Lin & Sandeep Krishnamurthy, 2017. "Generic and Brand Advertising Strategies Under Inter-Industry Competition," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 4(1), pages 18-27, September.
    3. Chiambaretto, Paul & Massé, David & Mirc, Nicola, 2019. "“All for One and One for All?” - Knowledge broker roles in managing tensions of internal coopetition: The Ubisoft case," Research Policy, Elsevier, vol. 48(3), pages 584-600.
    4. Kőhegyi, Gergely & Selei, Adrienn & Kiss, Hubert János & Zsoldos, János, 2014. "Koopetíció - néhány elméleti és empirikus eredmény egy kooperatív elemeket tartalmazó versenyzői helyzetről [Coopetition": Some theoretical and empirical results of a competitive situation wit," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 1000-1021.
    5. Caplan, Arthur J., 2023. "Regulating coopetition in an EV charging market," Economic Modelling, Elsevier, vol. 118(C).
    6. Paul Chiambaretto & David Massé & Nicola Mirc, 2019. "“All for One and One for All?” - Knowledge broker roles in managing tensions of internal coopetition: The Ubisoft case," Post-Print hal-02104540, HAL.

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    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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