Mixed oligopoly, public firm behavior, and free private entry

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 117
Issue: 3
Pages: 767-769

Authors (2)

Bennett, John (Royal Holloway) La Manna, Manfredi (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze a mixed oligopoly with free entry by private firms, assuming that a public firm maximizes an increasing function of output, subject to a break-even constraint. We establish an irrelevance result: whenever a mixed oligopoly is viable, then aggregate output, aggregate costs and welfare are the same with and without the public firm. However, replacing a viable mixed oligopoly with a public monopoly yields higher net welfare. Implications for privatization policy are suggested.

Technical Details

RePEc Handle
repec:eee:ecolet:v:117:y:2012:i:3:p:767-769
Journal Field
General
Author Count
2
Added to Database
2026-01-24