We show that privatization can be beneficial even if the government is rational and benevolent, and if the firm …, privatization is strictly preferable if the firm's future survival does not crucially depend on the success of managerial effort. …

incomplete contract theory. We use the framework of Aghionand Tirole (1997) and define the managerial control structure as …

The theory of incomplete contracting is rival to that of complete contracting as a frame of reference to understand …

liberalization and their privatization which can be complete or partial such that upstream production is still run by an SOE. We show … in most cases even if a holdup problem exists. For any vertically separated structure we find that privatization through … multi-product firms welfare dominates privatization through single-product firms. …

Stock market capitalization in developed countries grew while massive privatization plans were in progress. It is …

In this paper, we study the effect of share issue privatization (SIP) on private investment and financial market under … privatization (crowding-out effect). Vice-versa with risk aversion and perfect intertemporal substitutability (diversification … of the crowding-out effect, when the revenues of privatization are devoted to present public consumption. …

We provide a simple theoretical model to explain the mechanism whereby privatization of international airports can …

We investigate how port privatization affects port charges, firm profits, and welfare. Our model consists of an … international duopoly with two ports and two markets. When the unit transport cost is large, privatization of ports decreases the …