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Kazuhiro Ohnishi
''Partial privatization in price-setting mixed duopoly''
( 2010, Vol. 30 No.1 )
This paper investigates a price-setting mixed model involving a private firm and a public firm to reassess the welfare effect of partial privatization. First, the government chooses the level of privatization to maximize social welfare. Second, observing the level of privatization, the firms non-cooperatively choose prices. The paper then demonstrates that partial privatization is not an optimal choice for the government.
Keywords: Price-setting duopoly, Partial privatization, Mixed model
JEL: L3 - Nonprofit Organizations and Public Enterprise: General
Manuscript Received : Aug 10 2009 Manuscript Accepted : Jan 28 2010

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