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We analyze privatization in a differentiated oligopoly setting with a domestic public firm and foreign profit …-maximizing firms. In particular, we examine pricing below marginal cost by public firm, the optimal degree of privatization and, the … relationship between privatization and foreign ownership restrictions. When market structure is exogenous, partial privatization of …
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We study the gains from trade in an economy with oligopolistic competition, firm heterogeneity, and innovation. Oligopolistic competition together with free entry make markups responsive to firm productivity and trade costs. Lowering trade costs reduces markups on domestic sales but increases...
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