Stackelberg Mixed Duopoly with a Foreign Competitor

Toshihiro Matsumura

178 citations0/0 files storedBulletin of Economic Research

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Merger and Competition Analysis Global trade and economics Consumer Market Behavior and Pricing

Abstract

We investigate Stackelberg mixed duopoly models where a state‐owned public firm and a foreign private firm compete. We examine a desirable role (either leader or follower) of the public firm. We also consider endogenous roles by adopting the observable delay game of Hamilton and Slutsky (1990). We find that, in contrast to Pal (1998) discussing a case of domestic competitors, the public firm should be the leader and that it becomes the leader in the endogenous role game. We also find that in contrast to Ono (1990) eliminating a foreign firm does not improve domestic welfare in mixed oligopolies.

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1990Endogenous timing in duopoly games: Stackelberg or cournot equilibria 1998Partial privatization in mixed duopoly 1989ALTERNATIVE STRATEGIES OF A PUBLIC ENTERPRISE IN OLIGOPOLY *1990GAME THEORETIC MODELS OF MIXED OLIGOPOLY 1996A Mixed Oligopoly in the Presence of Foreign Private Firms 1988Helping Minor Firms Reduces Welfare 1998Mixed Oligopoly, Privatization, and Strategic Trade Policy 1998Endogenous timing in a mixed oligopoly

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