We re-examine the regulatory role of a public firm in an environment of private but correlated information about industry costs. We study three regimes of mixed-market interaction involving both public and private firms: a symmetric Bayesian-Nash equilibrium, an asymmetric Bayesian equilibrium...

A model of sequential entry with Leontief costs is studied in which demand is isoelastic. Some or all firms may hold excess capacity in the perfect equilibrium to the entry game. Firms with a first-mover advantage trade off the positioning value of a large investment in capacity, leading to a...