We analyze a mixed oligopoly with free entry by private firms, assuming that a public firm maximizes an increasing function of output, subject to a break-even constraint. We establish an irrelevance result: whenever a mixed oligopoly is viable, then aggregate output, aggregate costs and welfare...

We analyze a mixed oligopoly with free entry by private firms. It is assumed that a state-owned enterprise (SOE) maximizes an increasing function of output, subject to a break-even constraint. We first show that, because of instability, the industry cannot contain more than one SOE. Then we...

We analyse state-owned enterprise (SOE) behaviour under pure and mixed oligopoly. An industry comprising at least two SOEs is shown not to have a symmetric stable equilibrium. This suggests the need for planning in such industries. For mixed oligopoly, we assume that an SOE has a cost...

Menu-cost models that provide a theoretical underpinning for the "Keynesian asymmetry" whereby nominal prices are more flexible upward than downward consider relatively uncompetitive market structures (monopoly, oligopoly, monopolistic competition). We examine the effect of menu costs on a...