Strategic Privatization and Regulation Policy in Mixed Markets ¤

@inproceedings{Claude2005StrategicPA,
  title={Strategic Privatization and Regulation Policy in Mixed Markets ¤},
  author={Denis Claude and Jean Hindriks},
  year={2005}
}
In this paper we consider mixed oligopoly markets for di®erentiated goods where private and public ̄rms compete either in prices or quantities. We then study the welfare e®ect of privatization interpreted as partial strategic delegation of the public ̄rm to a private manager with pro ̄t concern. It is shown that partial privatization improves welfare with quantity competition when goods are substitutes, and with price competition when goods are complements. However full privatization… CONTINUE READING

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