Skip to main content

Optimal Privatization and Subsidization Policies in a Mixed Duopoly: Relevance of a Cost Gap

Buy Article:

Price: $25.00 plus tax (Refund Policy)

This study considers subsidization and privatization policies in a mixed duopoly with one public firm and one private firm. The special feature of this study is that privatization can reduce the cost gap between the firms. We show that the optimal subsidy yields the efficient production allocation if privatization is not implemented. However, once the public firm is privatized, it overproduces under the optimal subsidy. Moreover, partial privatization is optimal unless privatization significantly reduces the cost gap. (JEL: H42, L13, L32)
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Keywords: cost gap; mixed duopoly; partial privatization; subsidization

Appeared or available online: 16 March 2018

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more