Consumer benefits of reforming a state-dominated industry

  title={Consumer benefits of reforming a state-dominated industry},
  author={Heechul Min},
  journal={Journal of Regulatory Economics},
The presence of state-owned enterprises (SOEs) in an industry where private firms operate poses a concern over fair competition. This paper estimates the improvement in consumer welfare from eliminating the SOE’s privileges awarded by state-ownership and regulation. The empirical framework is based on a random coefficient discrete choice model and yields an economically interpretable welfare measure in a differentiated product market. Utilizing data on the Korean cigarette manufacturing… CONTINUE READING