Privatization and mergers in mixed oligopoly models
Abstract
The aim of this paper is to complement the existing literature on horizontalmergers, 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
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
Issue
Section
Articles
Published
2016-04-26