Privatization: Do prices rise or fall? Mixed duopoly with vertical differentiation

  • Julio César Arteaga García Universidad Autónoma de Nuevo León
  • Oscar J. Cárdenas Rodríguez Universidad de Guanajuato
  • Daniel Flores Curiel Universidad Autónoma de Nuevo León
Keywords: duopoly, privatization
JEL Classification: L13, L33


In this paper, we use a duopoly model with vertical (quality) product differentiation to determine whether privatization of a public firm leads to higher or lower prices than those prevailing in a mixed duopoly. We show that privatization can move prices on either direction.


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How to Cite
Arteaga García, J., Cárdenas Rodríguez, O., & Flores Curiel, D. (2004). Privatization: Do prices rise or fall? Mixed duopoly with vertical differentiation. Estudios Económicos, 19(2), 141-157.