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This paper models a mixed oligopoly with both a domestic and a foreign private firm and examines the resulting timing in the quantity setting game. We demonstrate that with a single simultaneous pre-game delay stage, the resulting endogenous timing has either the public firm leading or the two...
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This paper is the first to examine the welfare consequences of foreign competition in a mixed oligopoly set in a linear model of spatial price discrimination. It demonstrates that the entry of a foreign firm often lowers domestic welfare. This results because the public firm locates largely...
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Previous research examining mixed duopolies shows that the use of an optimal incentive contract for the public firm increases welfare and that privatization reduces welfare. We demonstrate that these results do not generalize to a mixed oligopoly with multiple private firms. We derive the...
Persistent link: https://www.econbiz.de/10005200303
"This paper is the first to examine the welfare consequences of a public firm in a traditional model of spatial price discrimination. It demonstrates that when a private firm acts as a Stackelberg location leader, the presence of a public firm always improves welfare. Moreover, when three firms...
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This paper demonstrates that it can be optimal for innovators that also produce to license via a fixed fee rather than a royalty in a model of spatial price discrimination. This reversal of the typical result emerges when reduced willingness to pay by consumers limits the competitive location...
Persistent link: https://www.econbiz.de/10013037369