A public firm in a model of spatial duopoly with price discrimination

We visit the role of privatization in the location decision of firms in an industry where no firm can produce all varieties demanded. We demonstrate that the Nash equilibrium locations are socially optimal, in the presence of a publicly owned firm, notwithstanding the degree of privatization.

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Year of publication:	2014
Authors:	Beladi, Hamid ; Chakrabarti, Avik ; Marjit, Sugata
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 123.2014, 1, p. 79-81
Publisher:	Elsevier
Subject:	Product-differentiation \| Privatization \| Price-discrimination \| Spatial-competition \| Firm-location

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Type of publication:	Article
Classification:	L13 - Oligopoly and Other Imperfect Markets ; L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts ; D43 - Oligopoly and Other Forms of Market Imperfection ; R32 - Other Spatial Production and Pricing Analysis
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010743693