Please use this identifier to cite or link to this item: http://buratest.brunel.ac.uk/handle/2438/7803
Title: Mixed oligopoly, public firm behavior, and free private entry
Authors: Bennett, J
La Manna, M
Keywords: Mixed oligopoly;Entry;Privatization
Issue Date: 2012
Publisher: Elsevier
Citation: Economics Letters, 117(3), 767 - 769, 2012
Abstract: We analyze a mixed oligopoly with free entry by private firms, assuming that a public firm maximizes an increasing function of output, subject to a break-even constraint. We establish an irrelevance result: whenever a mixed oligopoly is viable, then aggregate output, aggregate costs and welfare are the same with and without the public firm. However, replacing a viable mixed oligopoly with a public monopoly yields higher net welfare. Implications for privatization policy are suggested.
Description: © 2012 Elsevier B.V. All rights reserved
URI: http://bura.brunel.ac.uk/handle/2438/7803
DOI: http://dx.doi.org/10.1016/j.econlet.2012.08.025
ISSN: 0165-1765
1545-2921
Appears in Collections:Publications
Dept of Economics and Finance Research Papers

Files in This Item:
File Description SizeFormat 
Fulltext.pdf191.52 kBAdobe PDFView/Open


Items in BURA are protected by copyright, with all rights reserved, unless otherwise indicated.