LOCATION OF PUBLIC FIRM IN THE PRESENCE OF MULTINATIONAL FIRM: A MIXED DUOPOLY APPROACH *

By incorporating a multinational private firm into the mixed duopoly model with Hotelling-type spatial competition, we show that the private firm's nationality is a matter of the public firm's location. As the share of foreign capital increases in the private (multinational) firm, the public firm moves to a central place. The effects of price regulation and sequential location choice are also discussed. Copyright 2007 The AuthorsJournal compilation 2007 Blackwell Publishing Ltd/University of Adelaide and Flinders University .