This paper examines strategic managerial incentive and optimal privatization policy in a mixed duopoly model with a more efficient foreign private firm competing in the domestic market. It is shown that the home firm's incentive towards sales away from profit is higher and the foreign firm's is...

This paper examines optimal trade and privatization policies in a mixed duopoly in which a pubic home firm competes with a more efficient foreign firm. The home firm is a Cournot competitor or a Stackelberg leader. The home government chooses the degree of privatization and import tariff to...