Privatization Policies by National and Regional Governments
| Autor: | Francisco Martínez-Sánchez |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Government
National government General Computer Science Economic policy International economics jel:H42 jel:L33 Competition (economics) Horizontal Differentiation National and Regional Governments Mixed Duopoly Region Size Partial Privatization Intervention (law) Horizontal differentiation jel:L32 Order (exchange) jel:L13 Business Statistics Probability and Uncertainty Business and International Management Duopoly Social optimum jel:R59 |
| Zdroj: | International Game Theory Review. 24 |
| ISSN: | 1793-6675 0219-1989 |
| DOI: | 10.1142/s0219198921500110 |
| Popis: | In order to analyze the privatization policies undertaken by the national and regional governments, we consider a horizontal differentiation model with price competition in which a country consists of two regions of different sizes. We show that public-sector intervention by either the national or regional government is essential for achieving the social optimum, because a private duopoly does not achieve the social optimum. However, not all public interventions in firms are better than the private duopoly. On the other hand, the preferences of consumers and firms about privatization policy are completely opposite. Finally, the privatization policies of regional governments are completely opposite from one region to the other, and do not coincide with that of the national government. Overall, this paper shows that the relative size of regions is an important feature in the design of the privatization policies implemented by national and regional governments. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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