Privatization, Investment, and Competition
نویسندگان
چکیده
In practice, governments often retain some shares in the ...rms they privatize, the ensuing pro...t distributions being an additional source of revenue. We show for a two-...rm di¤erentiated-product oligopoly how partial state ownership may a¤ect ...rms’ subsequent investment and output behavior. Hence, we determine the optimum retained state ownership share under both Bertrand and Cournot competition in the product market, and ...nd the conditions under which it would be preferable to sell the ...rms to a single owner. Partial state ownership is optimal if the proportionate welfare weight on government revenue is high, but less than unity. JEL Classi...cation Numbers: L33, P21.
منابع مشابه
Examining the Moderating Effect of Industry Competition on Relationship between Privatization, Financial Performance and Using of Management Accounting Tools in TSE
In many countries, particularly developing countries, economic reforms, especially privatization, are considered as a strategic approach. The growth of the government decreases the competition in the market, and so, some fields should be privatized in order to create the competition. By moving towards privatization and the changes in competition methods and the presentation of the World Trade,...
متن کاملEndogenous Asset Ownership Structures in Deregulated Markets
This paper determines the equilibrium ownership structure in an emerging market deregulated by privatization and investment liberalization. It is shown that bidding competition in the privatization stage is necessary but not sufficient for reaching an efficient equilibrium market structure. Competition in the ensuing entry stage is also necessary. Otherwise, one firm can induce another to take ...
متن کاملPrivatization in a Small Open Economy with Imperfect Competition
We look at privatization in a general equilibrium model of a small, tariff-distorted, open economy. There is a differentiated good produced by both private and public sector enterprises. A reduction in government production in order to cut losses from such production raises the returns to capital and increases the tariff revenue, which are welfare improving. However, privatization also leads to...
متن کاملNetwork Investments at the Firm Level
This paper analyses the effects of regulatory reforms and corporate restructuring on the firmlevel investments of telecommunications industry. A dynamic model of incumbents’ investment in network assets allows to test the explaining strength of several aspects of regulation, competition and corporate structure. The sample includes telecommunications incumbents from the enlarged European Union a...
متن کاملرقابت، مالیاتستانی و ارتقای کیفی خصوصیسازی
The scientific researches have investigated the inefficiencies of government management and property. Economists and policy-makers maintain that privatization can serve to control such inefficiencies and even to inverse it. Some scholars, who have analyzed the consequences of privatization for various countries in terms of efficiency and equality, observed the positive impacts (for instance in ...
متن کامل