Mixed duopoly, cross-ownership and partial privatization

摘要: This paper investigates the effects of cross-ownership on optimal privatization, and vice-versa, in mixed duopoly. It shows that is profitable to private firm only if level privatization public sufficiently high. In equilibrium, does not take place even there partial privatization. However, possibility significantly limits socially most situations. Moreover, it demonstrates full nationalization optimal, case convex identical cost functions homogeneous goods. These results have strong implications both divestment competition policies.