scholarly journals Optimal Privatization Policy under Private Leadership in Mixed Oligopolies

2017 ◽  
Author(s):  
Ming Hsin Lin ◽  
Toshihiro Matsumura
Keyword(s):  
Mixed Oligopolies ◽  
Privatization Policy

PRIVATIZATION TRANSFERS AND CREDIT MARKET FRICTIONS

2002 ◽  
Vol 6 (3) ◽  
pp. 357-384
Author(s):  
Rodney M. Chun
Keyword(s):  
Credit Market ◽  
The Other ◽  
Equilibrium Analysis ◽  
Market Frictions ◽  
Private Capital ◽  
High Wage ◽  
Multiple Steady State ◽  
Market Friction ◽  
Credit Market Frictions ◽  
Privatization Policy

This paper examines an economy in which output is produced by state-owned enterprises and private firms. Private-capital formation requires intermediation that is subject to a credit market friction. In this environment, I look at the effects of a privatization policy that transfers state-owned capital to the private sector. Multiple steady-state equilibria are possible. When these arise, the low-wage equilibrium features a relatively inefficient financial system and privatization transfers help to increase the aggregate capital stock by reducing the severity of the credit market frictions. On the other hand, privatization transfers may have adverse effects when the economy is at the high-wage equilibrium. Analysis of the dynamic characteristics of the model reveals that development trap phenomenon and endogenous fluctuations can be observed.

International Tariffs in a Mixed Oligopoly with Research Spillovers

2016 ◽  
Vol 22 (3) ◽  
pp. 277-293
Author(s):  
Shoji Haruna ◽  
Rajeev K. Goel
Keyword(s):  
Industrial Organization ◽  
Research And Development ◽  
Technical Change ◽  
Large Range ◽  
Policy Implications ◽  
Mixed Oligopoly ◽  
Private Firms ◽  
Second Stage ◽  
Public Firm ◽  
Mixed Oligopolies

AbstractThis paper merges three strands of the literature – industrial organization, international trade, and economics of technical change – to examine the effect of tariffs on international mixed oligopolies which conduct research and development (R&D) that is prone to spillovers. Mixed oligopolies are prevalent in the defense sector, among other sectors. Using a two-stage sequential game with R&D in the first stage and production in the second stage, results show that higher tariffs reduce outputs of both the domestic public firm and foreign private firms, and private R&D. Effects on domestic R&D and welfare, and profits of foreign private firms depend upon spillovers. Within a large range of research spillovers, higher tariffs can in fact lower welfare. Some of these findings are different from traditional oligopolies and from models that ignore research spillovers. Policy implications are discussed.

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