38-vol. 19, no. 2, july-december, 2004
Articles

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

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  • Julio César Arteaga García,
  • Oscar J. Cárdenas Rodríguez,
  • Daniel Flores Curiel
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

Published 2004-07-01

Keywords

  • duopoly,
  • privatization

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

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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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