Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5054237 | Economic Modelling | 2014 | 9 Pages |
Abstract
We establish a model wherein a private firm competes with a partially privatized firm whose objective function is endogenously determined through bargaining between owners-the welfare-maximizing government and dividend-maximizing private shareholders. Many existing works on partial privatization have assumed that privatization increases the weight of profits in the partially privatized firm's objective, whereas it decreases the weight of welfare. However, our bargaining approach shows that this result can be reversed.
Related Topics
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Economics and Econometrics
Authors
Yoshio Kamijo, Yoshihiro Tomaru,