Matsushima, Noriaki; Matsumura, Toshihiro - In: Canadian Journal of Economics 36 (2003) 1, pp. 62-87
We investigate a mixed market where a state-owned welfare-maximizing public firm competes against profit-maximizing private firms. We use a circular city model with quantity-setting competition. In contrast to a pure market case discussed by Pal (1998a), spatial agglomeration of private firms...