UNIGE document Report
previous document  unige:5993  next document
add to browser collection
Title

Privatization and Efficiency in a Differentiated Industry

Authors
Anderson, Simon P.
Thisse, Jacques-François
Year 1995
Collection Cahiers de recherche; 1995.01
Abstract We consider a market in which a public firm competes against privates ones, and ask what happens when the public firm 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 for variety is not too weak. A sufficient statistic for welfare to be higher in the long run is that the public firm makes a loss. Profitable firms should not be privatized, in contrast with frequent practice. logistique
Full text
This document has no fulltext available yet, but you can contact its author by using the form below.
Structures
Citation
(ISO format)
ANDERSON, Simon P., DE PALMA, André, THISSE, Jacques-François. Privatization and Efficiency in a Differentiated Industry. 1995 https://archive-ouverte.unige.ch/unige:5993

228 hits

0 download

Update

Deposited on : 2010-04-15

Export document
Format :
Citation style :