Abstract

We study the optimal manipulation rules of a public firm’s objective function in a mixed oligopoly with imperfect product substitutability. We start with a baseline duopoly model and compare the solutions under quantity and price competition, and the way they are affected by product substitutability. This allows us to show that partial privatization, strategic delegation and other specific government’s commitments on the objective function of the public management can be looked at as special cases of these optimal rules, and to evaluate the viability of these policies under the two modes of competition. In this framework, we also discuss the equivalence between manipulation of the objective function and Stackelberg leadership. Since optimal manipulation rules change as new dimensions are added, we also derive the optimal rules under oligopoly, quadratic costs, and competition of international firms. This fairly general unified framework allows to discuss the impact of these factors on the government’s implementation policies of the optimal manipulation rules.

Autore Pugliese

• Chirco Alessandra , Scrimitore Marcella

Tutti gli autori

• Benassi C. , Chirco A. , Scrimitore M.

Titolo volume/Rivista

JOURNAL OF ECONOMICS

Anno di pubblicazione

2014

ISSN

1617-7134

ISBN

Non Disponibile

Numero di citazioni Wos

3

Ultimo Aggiornamento Citazioni

28/04/2018

Numero di citazioni Scopus

4

Ultimo Aggiornamento Citazioni

22/04/2018

Settori ERC

Non Disponibile

Codici ASJC

Non Disponibile