Privatization and Efficiency in a Differentiated Industry.

We consider a market in which a public firm completes against private ones, and ask what happens when the public firms is privatized. In the short run, privatization is harmful because prices rise: the disciplinary role of the public firm is lost. In the long run, privatization, leads to further entry; the net effect is beneficial if consumer preference for variety is not too weak.

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Year of publication:	1996
Authors:	Anderson, S.P. ; de Palma, A. ; Thisse, J.F.
Institutions:	Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain
Subject:	PRIVATIZATION \| PRODUCTS \| OLIGOPOLIES

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Series:	Papers.
Type of publication:	Book / Working Paper
Notes:	26 pages
Classification:	L13 - Oligopoly and Other Imperfect Markets ; L32 - Public Enterprises ; L33 - Comparison of Public and Private Enterprises; Privatization; Contracting Out
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005779440