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| Vasileios Zikos |
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| ''Stackelberg mixed oligopoly with asymmetric subsidies'' |
| ( 2007, Vol. 12 No.13 ) |
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| In a mixed oligopoly, when the public leader becomes a private leader and the government provides output subsidies, then privatization causes the optimal subsidy, profits and welfare to fall [Economics Letters 83 (2004) 411]. We show instead that if the leader and the followers receive asymmetric, rather than symmetric subsidies, the first-best optimum can be restored. In this case, privatization bears no consequences on the followers' subsidy, output and welfare. |
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| Keywords: |
JEL:
L3 - Nonprofit Organizations and Public Enterprise: General |
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| Manuscript Received : Feb 08 2007 | | Manuscript Accepted : Jun 21 2007 |
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