Quality Rivalry in an Industry Composed of Private and Public Firms under Privatization
| Autor: | Yasunori Ishii |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
021110 strategic
defence & security studies Government media_common.quotation_subject 05 social sciences 0211 other engineering and technologies Public firm 02 engineering and technology Private sector 0506 political science 050602 political science & public administration Production (economics) Quality (business) Product (category theory) Business Duopoly Rivalry Industrial organization media_common |
| Zdroj: | Open Journal of Social Sciences. :29-42 |
| ISSN: | 2327-5960 2327-5952 |
| Popis: | Modeling a duopoly in which a private firm and a public firm endogenously decide their product qualities and outputs under a privatization policy of a public firm by government, we analyze relationships between the privatization degree of the public firm and firms’ product quality choices. For establishing a more actual model we adopt more generalized demand functions including firms’ product qualities as variables. We find that a rise in the privatization degree of the public firm lowers the public firm’s product quality, whilst it raises the private firm’s one. We also show that the product quality of the public firm is not always inferior to that of the private firm, depending on their production and product quality technologies. Furthermore, we demonstrate that when the firms’ production and product quality technologies are identical to each other, the product quality of the public firm is always superior to that of the private firm. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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