Price-Setting Mixed Duopoly Models with Complementary Goods

Kazuhiro Ohnishi

.

DOI: 10.4236/me.2010.11003                

Abstract

This paper considers domestic (resp. international) Bertrand mixed duopoly competition in which a state-owned welfare-maximizing public firm and a domestic (resp. foreign) profit-maximizing private firm produce complementary goods. The main purpose of the paper is to present and to compare the equilibrium outcomes of the two mixed duopoly models.

Keywords

Complementary Goods, Price Competition, Domestic Mixed Duopoly, International Mixed Duopoly

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	F. Delbono and G. Rossini, “Competition Policy vs Horizontal Merger with Public, Entrepreneurial, and Labor-Managed Firms,” Journal of Comparative Economics, Vol. 16, No. 2, June 1992, pp. 226-240.
[2]	F. Delbono and V. Denicolò, “Regulating Innovative Activity: The Role of Public Firm,” International Journal of Industrial Organization, Vol. 11, No. 1, March 1993, pp. 35-48.
[3]	L. Nett, “Why Private Firms are More Innovative than Public Firms,” European Journal of Political Economy, Vol. 10, No. 4, December 1994, pp. 639-653.
[4]	J. Willner, “Welfare Maximization with Endogenous Average Costs,” International Journal of Industrial Organization, Vol. 12, No. 3, September 1994, pp. 373-386.
[5]	K. Fjell and D. Pal, “A Mixed Oligopoly in the Presence of Foreign Private Firms,” Canadian Journal of Economics, Vol. 29, No. 3, August 1996, pp. 737-743.
[6]	K. George and M. La Manna, “Mixed Duopoly, Inefficiency, and Public Ownership,” Review of Industrial Organization, Vol. 11, No. 6, December 1996, pp. 853-860.
[7]	M. D. White, “Mixed Oligopoly, Privatization and Subsidization,” Economics Letters, Vol. 53, No. 2, November 1996, pp. 189-195.
[8]	S. Mujumdar and D. Pal, “Effects of Indirect Taxation in a Mixed Oligopoly,” Economics Letters, Vol. 58, No. 2, February 1998, pp. 199-204.
[9]	D. Pal, “Endogenous Timing in a Mixed Oligopoly,” Economics Letters, Vol. 61, No. 2, November 1998, pp. 181-185.
[10]	D. Pal and M. D. White, “Mixed Oligopoly, Privatization, and Strategic Trade Policy,” Southern Economic Journal, Vol. 65, No. 2, April 1998, pp. 264-281.
[11]	J. Poyago-Theotoky, “R&D Competition in a Mixed Duopoly Under Uncertainty and Easy Imitation,” Journal of Comparative Economics, Vol. 26, No. 3, September 1998, pp. 415-428.
[12]	K. Fjell and J. S. Heywood, “Public Stackelberg Leadership in a Mixed Oligopoly with Foreign Firms,” Australian Economic Papers, Vol. 41, No. 3, September 2002, pp. 267-281.
[13]	T. Matsumura, “Stackelberg Mixed Duopoly with a Foreign Competitor,” Bulletin of Economic Research, Vol. 55, No. 3, July 2003, pp. 275-287.
[14]	L. Han and H. Ogawa, “Economic Integration and Strategic Privatization in an International Mixed Oligopoly,” FinanzArchiv, Vol. 64, No. 3, September 2008, pp. 352- 363.
[15]	K. Ohnishi, “International Mixed Duopoly and Strategic Commitments,” International Economics and Economic Policy, Vol. 4, No. 4, February 2008, pp. 421-432.
[16]	J. Fernández-Ruiz, “Managerial Delegation in a Mixed Duopoly with a Foreign Competitor,” Economics Bulletin, Vol. 29, No. 1, February 2009, pp. 90-99.
[17]	D. Bös, “Public Enterprise Economics,” North-Holland,1986.
[18]	D. Bös, “Privatization: A Theoretical Treatment,” Clarendon Press, 2001.
[19]	J. Vickers and G. Yarrow, “Privatization: An Economic Analysis,” MIT Press, 1988.
[20]	H. Cremer, M. Marchand and J.-F. Thisse, “The Public Firm as an Instrument for Regulating an Oligopolistic Market,” Oxford Economic Papers, Vol. 41, No. 1, January 1989, pp. 283-301.
[21]	L. Nett, “Mixed Oligopoly with Homogeneous Goods,” Annals of Public and Cooperative Economics, Vol. 64, No. 3, July 1993, pp. 367-393.
[22]	D. Bös, “Income Taxation, Public Sector Pricing and Redistribution,” Scandinavian Journal of Economics, Vol. 86, No. 2, June 1984, pp. 166-183.
[23]	H. Cremer, M. Marchand and J.-F. Thisse, “Mixed Oligopoly with Differentiated Products,” International Journal of Industrial Organization, Vol. 9, No. 1, March 1991, pp. 43-53.
[24]	A. Ogawa and K. Kato, “Price Competition in a Mixed Duopoly,” Economics Bulletin, Vol. 12, No. 4, July 2006, pp. 1-5.
[25]	J. C. Bárcena-Ruiz, “Endogenous Timing in a Mixed Duopoly: Price Competition,” Journal of Economics, Vol. 91, No. 3, July 2007, pp. 263-272.
[26]	J. C. Barcena-Ruiz and M. B. Garzón, “Capacity Choice in a Mixed Duopoly under Price Competition,” Economics Bulletin, Vol. 12, No. 26, October 2007, pp. 1-7.
[27]	K. Ohnishi, “Domestic and International Mixed Models with Price Competition,” International Review of Eco-nomics, Vol. 57, No. 1, March 2010, pp. 1-7.