We establish a model wherein a private firm competes with a partially privatized firm whose objective function is endogenously determined through bargaining between owners—the welfare-maximizing government and dividend-maximizing private shareholders. Many existing works on partial...

This paper examines the endogenous choice problem of each firm's price or quantity contract in a mixed duopoly composed of one social welfare maximizing public firm and one relative profit-maximizing private firm. In this paper, we show that unless the degree of product differentiation and the...