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Governments and Producers in Multinational Markets: A Mixed Oligopoly
Applied Economics Quarterly, Vol. 56 (2010), Iss. 3 : pp. 211–229
2 Citations (CrossRef)
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1Economics & Finance Department, School of Business, Clayton State University, 2000 Clayton State Boulevard, Morrow, GA 30260 – 028.
Cited By
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Abstract
This paper extends the existing mixed oligopoly analysis by studying the case where governments do not have the same attitude toward producers' surplus in a multinational market. It demonstrates that governments' emphasis on profitability might discourage them from joining a coordinated privatization process with other governments. Thus the governments do not always face a prisoners' dilemma in privatizing their national firms as suggested previously. It also demonstrates that private sector increases its production when governments appreciate producers' surplus more than consumers'.
JEL Classification: L13, L32