In this paper we consider mixed oligopoly markets for differentiated goods where private and public firms compete … either in prices or quantities. We then study the welfare effect of privatization interpreted as partial strategic delegation … of the public firm to a private manager with profit concern. It is shown that partial privatization improves welfare with …

This paper incorporates the vertical structure of governments into a mixed oligopoly model by considering the public … state‐owned public firm should be privatised. Furthermore, we show that for the welfare of a country, a mixed oligopoly with … a vertical structure of government can be more desirable than a mixed oligopoly without it …

product differentiation and the cross-country distribution of private firms affect the strategic privatization choices made by … firms, and privatization to be global welfare enhancing in this case. …