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Public Monopoly, Mixed Oligopoly and Productive Efficiency[Note 1. The authors are grateful for comments by the referees. ...]
Author(s) -
Nishimori Akira,
Ogawa Hikaru
Publication year - 2002
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.00158
Subject(s) - oligopoly , monopoly , incentive , competition (biology) , industrial organization , microeconomics , deregulation , economics , investment (military) , market structure , business , market economy , cournot competition , ecology , politics , political science , law , biology
In general, the introduction of competition into the public sector seems to lead to higher cost‐efficiency in service production. However, there are examples of substantial cost increases in some areas. In this paper, using a mixed oligopoly model, we investigate the effects of deregulation on the cost‐reducing incentives of a public firm. Our results show that a firm that is a public monopoly has greater incentive to conduct cost‐reducing investment than a public firm within mixed oligopoly market.