This paper investigates the relationship between partial privatization and the entry of private firms. The effects of foreign private firms' entry on a public firm's output and on the home country's welfare are different from well known results, if the public firm is partially privatized....

This paper analyzes the interaction between two political economy decisions by a government: whether to privatize a public firm and what environmental policy to choose (an environmental tax or an emission standard). We find that when market competition is weak the government does not privatize...