We show under general demand and cost conditions that in a mixed duopoly with pollution the government can implement the socially optimal outputs and abatements by a tax-subsidy scheme and keeping the public firm fully public. The scheme requires taxing outputs and subsidizing abatements at...

Considering a differentiated mixed duopoly we show that when privatization and pollution tax are used together environmental damage will be non-monotone in the level of privatization, and optimal privatization is always partial privatization. Whether privatization will improve the environment or...

Abstract This paper analyzes the implications of network externalities on strategic managerial delegation contracts in a Cournot duopoly. It shows that, in the presence of strong network externalities, firms obtain higher profits in the equilibrium under strategic managerial delegation compared...