Mixed Duopoly with Product Differentiation: Sequential Choice of Location |
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Authors: | Toshihiro Matsumura & Noriaki Matsushima |
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Institution: | University of Tokyo;, Shinshu University |
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Abstract: | We investigate the sequential choice of location in a mixed duopoly, where a welfare–maximising public firm competes against a profit–maximising private firm. We examine the desirable role of the public firm in a mixed market. We also consider the effect of price regulation. We find that the public firm should become the follower (leader) if a price regulation is (is not) imposed. We also find that neither price regulation nor privatisation of the public firm improves welfare. |
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