This Element offers a review and synthesis of the theoretical analysis of mixed oligopoly, that is a hybrid market structure in which public (state-owned) and private firms interact, using a variety of strategic variables. A distinguishing feature of a mixed oligopoly is that firms have...

In a neoclassical growth model with public consumption, we show the following Pareto optimal tax rules. The government should tax leisure and private consumption at the same rate, and subsidize net investment at the same rate it taxes net capital income. Also, it should tax capital income more...

We consider a simple oligopoly model where firms engage in cost-reducing R&D and compare two R&D regimes: R&D competition and R&D cooperation in the form of a research joint venture (RJV). We introduce coordination costs for the RJV and examine how these affect the equilibrium outcomes.