Abstract

http://ssrn.com/abstract=2309845
 


 



Mixed Duopoly, Product Differentiation and Competition


Minoru Kitahara


University of Tokyo - Faculty of Economics

Toshihiro Matsumura


University of Tokyo - Institute of Social Science

September 2013

The Manchester School, Vol. 81, Issue 5, pp. 730-744, 2013

Abstract:     
We examine the relationship between the equilibrium price and the degree of product differentiation in a mixed duopoly in which a welfare‐maximizing public enterprise competes against a profit‐maximizing private firm. Existing works on private economy show that increased product differentiation mitigates price competition. We find that, in a mixed economy, increased product differentiation can accelerate competition when the demand is elastic. The private firm chooses to locate itself too close to the public firm (and thus makes the resulting degree of product differentiation too low) for social welfare, which never appears in the private economy.

Number of Pages in PDF File: 15

Accepted Paper Series


Date posted: August 14, 2013  

Suggested Citation

Kitahara, Minoru and Matsumura, Toshihiro, Mixed Duopoly, Product Differentiation and Competition (September 2013). The Manchester School, Vol. 81, Issue 5, pp. 730-744, 2013. Available at SSRN: http://ssrn.com/abstract=2309845 or http://dx.doi.org/10.1111/j.1467-9957.2012.02329.x

Contact Information

Minoru Kitahara
University of Tokyo - Faculty of Economics ( email )
7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan
Toshihiro Matsumura
University of Tokyo - Institute of Social Science ( email )
Hongo 7-3-1
Tokyo, TOKYO 113-0033
Japan
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