Barcena-Ruiz, Juan Carlos; Garzón, María Begoña - In: Economics Bulletin 12 (2007) 26, pp. 1-7
This paper shows that when firms compete on prices in a mixed duopoly, the public firm chooses over-capacity when products are substitutes and under-capacity when products are complements. The private firm always chooses under-capacity. This result is in contrast with that obtained in the...