is privatized. In the short run, privatization is harmful because all prices rise; the disciplinary role of the public … firm is lost. In the long run, privatization leads to further entry; the net effect is beneficial if consumer preference …

oligopolies, this study investigates the efficiency of privatization. The results are twofold. First, regardless of the government …

as follows. Given that one of the tax regimes is predetermined, privatization never improves welfare and privatization is … by the government, privatization is preferable from the viewpoint of social welfare if the government heavily emphasizes … government never has the incentive for privatization if the government considers either tax as an option. …