Abstract
If a publicly-owned firm has a higher marginal cost than a private firm, partial public ownership may be welfare-improving, if the public firm acts is Stackelberg leader. If the private firm's marginal cost is private information a simple transfer function is truth-eliciting. If the stock market is efficient, the cost of renationalization is ''small''.
| Original language | English |
|---|---|
| Pages (from-to) | 853-860 |
| Number of pages | 8 |
| Journal | Review of Industrial Organization |
| Volume | 11 |
| Publication status | Published - Dec 1996 |
Keywords
- mixed oligopoly
- public ownership
- privatization