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

Authors

  • Julio César Arteaga García Universidad Autónoma de Nuevo León
  • Oscar J. Cárdenas Rodríguez Universidad de Guanajuato
  • Daniel Flores Curiel Universidad Autónoma de Nuevo León

DOI:

https://doi.org/10.24201/ee.v19i2.175

Keywords:

duopoly, privatization

Abstract

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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Published

2004-07-01

How to Cite

Arteaga García, J. C., Cárdenas Rodríguez, O. J., & Flores Curiel, D. (2004). Privatization: Do prices rise or fall? Mixed duopoly with vertical differentiation. Estudios Económicos De El Colegio De México, 19(2), 141–157. https://doi.org/10.24201/ee.v19i2.175