This paper investigates the optimal partial privatization of a Stackelberg leader in a mixed oligopoly. It builds from Matsumura's duopoly Cournot model (1998) by comparing Cournot and Stackelberg models. In Cournot, partial ownership is optimal in a duopoly. In Stackelberg, partial...

We analyze Varian's (1980) Model of Sales, and show that when the number of uninformed consumers increases, prices become less competitive for all consumers. Thus, the influx of uninformed consumers generates a negative externality increasing prices paid by informed consumers.

This paper considers a spatial discrimination Cournot model with asymmetric demand. We use the geographical interpretation of the linear market and introduce differentiated products. We analyze a location-quantity game and show that agglomeration or dispersed locations may arise, depending on...

To extend the empirical research on Gibrat's law in developing countries, this article uses a linear-in-means model to test how inter-firm interactions can affect the growth of small manufacturing firms in Tunisia. More specifically, we distinguish between the effects of own firm's...

This paper develops a spatial model to analyze the stability of a market sharing agreement between two firms. We find that the stability of the cartel depends on the relative market size of each firm. Collusion is not attractive for firms with a small home market, but the incentive for collusion...

This paper investigates the optimal partial privatization of a Stackelberg leader in a mixed oligopoly. It builds from Matsumura's duopoly Cournot model (1998) by comparing Cournot and Stackelberg models. In Cournot, partial ownership is optimal in a duopoly. In Stackelberg, partial...

The present paper is concerned with addressing the issue of firms competing in both prices and quantities (capacity levels) within a simple differentiated duopoly where products are asymmetrically differentiated by quality location. A three-stage competitive model is investigated such that firms...

The paper examines the impact of firms exit on the long-term efficiency growth. It is argued that, contrary to the generally established effect in the literature of industrial organisation, the natural selection process hinders economic efficiency growth. Indeed exit of firms causes losses of...

We discuss the effects of bundling two goods offered by two symmetric firms. This situation requires the use of some sharing rule for the profits from the sales of the bundle. We show that the choice of this rule may have substantial effects on prices and profits – even if the possible...

Within an environment of sequential innovations, real world evidence suggests that the licensing decision of the initial patent can occur either before or after the R&D investment of the follow-on invention. The possibility of licensing after the follow-on invention exists due to the presence of...