Privatization and mergers in mixed oligopoly models

  • Jose Mendez

Abstract

The aim of this paper is to complement the existing literature on horizontal
mergers, by setting a Cournot mixed oligopoly model. Specifically, the merger
paradox is qualified by proving that a merger could be profitable for the merging
firms even if it does not include most market firms. Furthermore, it is
proved that a merger can only be welfare improving if the degree of privatization
of the public firm is low enough.
Keywords Mixed oligopoly, privatization, mergers
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How to Cite
Mendez, J. (2016). Privatization and mergers in mixed oligopoly models. Estudios de Economía, 34(1), pp. 37-52. Retrieved from https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/40303/43442
Section
Articles
Published
2016-04-26