We investigate whether or not privatization is beneficial from the viewpoint of social welfare in a monopolistic competition model. We discuss the relationship between the welfare effects of privatization and the degree of foreign direct investment in the private sector, which is an important...

Using a simple downstream duopoly model with vertical relations and downstream R&D, we investigate the effect of non-assertion of patents (NAP) provisions. A monopoly upstream firm decides whether to employ NAP provisions. If it does so, it freely incorporates the R&D outcomes into its inputs....

This paper provides an example that incumbent firms might allow potential entrants to enter a market. The market consists of two sub-markets: a high-end market and a low-end market. (i) If low-quality products are of no value to consumers in the high-end market, (ii) consumers in the low-end...

This paper discusses competition between high-quality private service providers that maximize their own profits and a low-quality public service provider that maximizes social surplus. There are two heterogeneous consumer groups: those who demand only high-quality services and those who care...

We discuss competition between high-quality private service providers that maximize their own profits and a low-quality public service provider that maximizes social surplus. Two heterogeneous consumer groups exist: those who demand only high-quality services and those who care little whether...

Two models of competition between high-end and low-end products benefiting the high-end firms are presented. One is a quantity competition model, and the other is a price competition model with product differentiation. The key factor is the existence of two heterogeneous consumer groups: those...