Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Privatization and timing in a mixed oligopoly with both foreign and domestic firms
AU - Heywood, John
AU - Ye, Guangliang
PY - 2009/12
Y1 - 2009/12
N2 - This paper models a mixed oligopoly with both a domestic and a foreign private firm and examines the resulting timing in the quantity setting game. We demonstrate that with a single simultaneous pre-game delay stage, the resulting endogenous timing has either the public firm leading or the two private firms leading. An alternative characterisation of the pre-game stage results in the single timing in which the two private firms lead and the public firm follows. For all timings that emerge endogenously, we show that privatisation will always lower domestic welfare but its influence on global welfare is ambiguous.
AB - This paper models a mixed oligopoly with both a domestic and a foreign private firm and examines the resulting timing in the quantity setting game. We demonstrate that with a single simultaneous pre-game delay stage, the resulting endogenous timing has either the public firm leading or the two private firms leading. An alternative characterisation of the pre-game stage results in the single timing in which the two private firms lead and the public firm follows. For all timings that emerge endogenously, we show that privatisation will always lower domestic welfare but its influence on global welfare is ambiguous.
U2 - 10.1111/j.1467-8454.2009.00379.x
DO - 10.1111/j.1467-8454.2009.00379.x
M3 - Journal article
VL - 48
SP - 320
EP - 332
JO - Australian Economic Papers
JF - Australian Economic Papers
SN - 0004-900X
IS - 4
ER -