-as then firms want to limit the competition in the toll stage by setting lower capacities-or when firms set capacities one … capacities. In our Stackelberg competition, the firms that act last have few if any capacity decisions to influence. Hence, they … are more concerned with the toll competition substage, and set a higher volume/capacity ratio than the public operator …

privatization. The consistent conjectures equilibrium (CCE) generates substantially greater optimal privatization than does any …, the CCE generates substantially less privatization than the CNE. The optimal extent of privatization with a domestic rival …