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Multiple Long-Run Equilibria in a Free-Entry Mixed Oligopoly

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  • Haraguchi, Junichi
  • Matsumura, Toshihiro

Abstract

We investigate a free-entry mixed oligopoly with constant marginal costs. A privatization policy is implemented after private firms enter the market. We find that both full privatization and full nationalization are equilibrium policies, and the former is the worst privatization policy for welfare.

Suggested Citation

  • Haraguchi, Junichi & Matsumura, Toshihiro, 2018. "Multiple Long-Run Equilibria in a Free-Entry Mixed Oligopoly," MPRA Paper 86704, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:86704
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    File URL: https://mpra.ub.uni-muenchen.de/86704/2/MPRA_paper_86704.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Liu, Yi & Lahiri, Sajal & Liu, Tianqi, 2018. "Optimal Partial Privatization in the Presence of Foreign Competition: The Role of Efficiency Differentials and Unemployment," MPRA Paper 91471, University Library of Munich, Germany, revised 23 Jan 2019.
    2. Gil-Moltó, Maria José & Poyago-Theotoky, Joanna & Rodrigues-Neto, José A. & Zikos, Vasileios, 2020. "Mixed oligopoly, cost-reducing research and development, and privatisation," European Journal of Operational Research, Elsevier, vol. 283(3), pages 1094-1106.

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    More about this item

    Keywords

    entry-then-privatization; constant marginal costs; profit-enhancing entry; two polar equilibrium privatization policies;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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