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Recent policy discussions have debated whether governments should treat state-owned and private enterprises equally or adopt different policies towards each type of enterprise. Such questions are pertinent for difficult economic climates in which government subsidy towards struggling state-owned...
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This paper examines the optimal privatization policy in vertically related markets in which an upstream public firm … and the resulting profit margin is positive. However, complete privatization is never optimal. Numerical simulations … reveal both the diverse optimal privatization regimes and the patterns of optimal privatization levels with varying numbers …
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