Strategic behaviors on privatization between regions

摘要: In this paper, focusing on the policy initiatives between central government and local governments, we analyze privatization policies in a mixed oligopoly model composed of two regions. The main results are as follows. First, case centralized regime, partial is socially desirable if substitutability goods relatively high; not, full nationalization desirable. decentralized governments take equilibrium irrespective substitutability. However, tend to lower rate public firms increases. Second, more (resp. less) aggressive for than when higher lower) critical level. This shows that argument Han Ogawa (FinanzArchiv Public Financ Anal 64(3):352–363, 2008) justifiable under certain conditions. Finally, decentralization brings forth an increase decrease) market size consumer surplus social welfare necessarily decreases by any levels