MARKET‐DEMAND BOOSTING AND PRIVATIZATION IN A MIXED DUOPOLY |
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Authors: | Lihua Han Hikaru Ogawa |
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Affiliation: | 1. School of Political Science and Public Administration, Shandong University, P.R. China;2. School of Economics, Nagoya University, Japan |
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Abstract: | This study incorporates demand‐boosting strategies into a mixed duopoly model in order to consider the endogenous determination of market demand. The results indicate equilibrium characteristics that differ from those found under an exogenous demand setting. As consumers become more sensitive to the demand‐boosting strategies of firms, the government must choose a lower level of privatization. This suggests that the responsiveness of consumer demand to the demand‐boosting strategies of firms constitutes a limiting factor for privatization. |
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Keywords: | market‐demand boosting mixed duopoly privatization L33 M37 |
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