This paper investigates the relationship between partial privatization and the entry of private firms. The effects of …, if the public firm is partially privatized. Furthermore, the effects of partial privatization on market performance, as … well as the socially optimal degree of privatization, crucially depend on whether the new entrant is a domestic or foreign …

We address two questions. First, does the excess entry result of pure oligopoly hold when firms face a substitute good … firm, we find that partial privatization need not always be optimal. Depending on the substitutability of the two products …