Wednesday, October 31, 2018
Haraguchi, Junichi and Matsumura, Toshihiro explore Multiple Long-Run Equilibria in a Free-Entry Mixed Oligopoly.
ABSTRACT: We investigate a free-entry mixed oligopoly with constant marginal costs. A privatization policy is implemented after private firms enter the market. We find that both full privatization and full nationalization are equilibrium policies, and the former is the worst privatization policy for welfare.