Partial Privatization in Price-Setting Mixed Duopolies with Complementary Goods

DOI: 10.4236/me.2011.21007   PDF   HTML     4,754 Downloads   8,194 Views   Citations


We consider a domestic (resp. international) mixed duopoly model in which a domestic public firm and a domestic (resp. foreign) private firm produce complementary goods. First, the domestic government chooses the level of privatization to maximize domestic social welfare. Second, observing the level of privatization, the firms simultaneously and independently choose prices. We present the equilibrium outcomes of the two mixed duopoly models and shows that our result is in marked contrast to that of the price-setting mixed du-opoly model with substitute goods.

Share and Cite:

K. Ohnishi, "Partial Privatization in Price-Setting Mixed Duopolies with Complementary Goods," Modern Economy, Vol. 2 No. 1, 2011, pp. 45-48. doi: 10.4236/me.2011.21007.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] C. Fershtman, “The Interdependence between Ownership Status and Market Structure: The Case of Privatization,” Economica, Vol. 57, August 1990, pp. 319-328. doi:10.2307/2554937
[2] T. Matsumura, “Partial Privatiza-tion in Mixed Duopoly,” Journal of Public Economics, Vol. 70, No. 3, December 1998, pp. 473-483. doi:10.1016/S0047-2727(98)00051-6
[3] W. W. Chang, “Op-timal Trade and Privatization Policies in an International Du-opoly with Cost Asymmetry,” Journal of International Trade and Economic Development, Vol. 14, No. 1, March 2005, pp. 19-42. doi:10.1080/0963819042000333234
[4] T. Matsumura and O. Kanda, “Mixed Oligopoly at Free Entry Markets,” Journal of Economics, Vol. 84, No. 1, February 2005, pp. 27-48. doi:10.1007/s00712-004-0098-z
[5] C. C. Chao and E. S. H. Yu, “Partial Privatization, Foreign Competition, and Optimal Tariff,” Review of International Economics, Vol. 14, No. 1, February 2006, pp. 87-92. doi:10.1111/j.1467-9396.2006.00562.x
[6] Y. Tomaru, “Mixed Oligopoly, Partial Privatization and Subsidization,” Economics Bulletin, Vol. 12, No. 5, July 2006, pp. 1-6.
[7] K. Fujiwara, “Partial Privatization in a Differentiated Mixed Oli-gopoly,” Journal of Economics, Vol. 92, No. 1, September 2007, pp. 51-65. doi:10.1007/s00712-007-0267-1
[8] Y. Lu and S. Poddar, “Firm Ownership, Product Differentiation and Welfare,” The Manchester School, Vol. 75, No. 2, March 2007, pp. 210-217. doi:10.1111/j.1467-9957.2007.01011.x
[9] 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. doi:10.1628/001522108X374179
[10] K. Ishibashi and T. Kaneko, “Partial Privatization in Mixed Duopoly with Price and Quantity Competition,” Journal of Economics, Vol. 95, No. 3, December 2008, pp. 213-231. doi:10.1007/s00712-008-0020-4
[11] B. Saha and R. Sensarma, “The Distributive Role of Managerial Incentives in a Mixed Duopoly,” Economics Bulletin, Vol. 12, No. 27, October 2008, pp. 1-10.
[12] B. Artz, J. S. Heywood and M. McGinty, “The Merger Paradox in a Mixed Oligopoly,” Research in Econom-ics, Vol. 63, No. 1, March 2009, pp. 1-10. doi:10.1016/j.rie.2008.10.003
[13] P. R. Chowdhury, “Mixed Oligopoly with Distortions: First Best with Budget-Balance and the Irrelevance Principle,” Economics Bulletin, Vol. 29, No. 3, August 2009, pp. 1885-1900.
[14] L. F. S. Wang, Y. Wang and L. Zhao, “Privatization and the Environment in a Mixed Duopoly with Population Abatement,” Economics Bulletin, Vol. 29, No. 4, December 2009, pp. 3112-3119.
[15] J. S. Heywood and G. Ye, “Optimal Privatization in a Mixed Duopoly with Consistent Conjectures,” Journal of Economics, Vol. 101, No. 3, November 2010, pp. 231-246. doi:10.1007/s00712-010-0156-x
[16] L. F. S. Wang and J. Y. Lee, “Partial Privatization, Foreign Competition, and Tariffs Ranking,” Economics Bulletin, Vol. 30, No. 3, September 2010, pp. 2405-2012.
[17] K. Ohnishi, “Partial Privatization in Price-Setting Mixed Duopoly,” Economics Bulletin, Vol. 30, No. 1, January 2010, pp. 309-314.
[18] J. C. Bárcena-Ruiz, “Endogenous Timing in a Mixed Duopoly: Price Competition,” Journal of Economics, Vol. 91, No. 3, July 2007, pp. 263-272. doi:10.1007/s00712-007-0255-5

comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.