The Role of Foreign Competition and Cost Asymmetry in Partial Privatization

Posted: 16 Nov 2015

See all articles by Yi Liu

Yi Liu

College of Economics and Trade @ Hunan University

Sajal Lahiri

Southern Illinois University Carbondale - Department of Economics

Date Written: November 16, 2015

Abstract

This paper investigates the role of foreign competition and cost asymmetry in influencing privatization policy for domestic firms. With a mixed oligopoly model, we characterize and compare optimal privatization policy, and find that cost asymmetry and foreign competition interact in an interesting way.

Keywords: Privatization, Mixed Oligopoly, Foreign Competition, Cost Asymmetry

JEL Classification: D21, D43, D69, O53

Suggested Citation

Liu, Yi and Lahiri, Sajal, The Role of Foreign Competition and Cost Asymmetry in Partial Privatization (November 16, 2015). Available at SSRN: https://ssrn.com/abstract=2691204 or http://dx.doi.org/10.2139/ssrn.2691204

Yi Liu (Contact Author)

College of Economics and Trade @ Hunan University ( email )

China

Sajal Lahiri

Southern Illinois University Carbondale - Department of Economics ( email )

MC 415
1000 Faner Drive
Carbondale, IL 62901
United States

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