PARTIAL PRIVATIZATION AND SUBSIDIZATION IN A MIXED DUOPOLY: R&D VERSUS OUTPUT SUBSIDIES

• LEE SANG-HO

  Chonnam National University

• MUMINOV TIMUR K.

  Chonnam National University

• TOMARU YOSHIHIRO

  Chukyo University

Abstract

This study investigates R&D and output subsidies in a mixed duopoly with partial privatization. We show that an output subsidy is welfare-superior to an R&D subsidy policy, but the government has a higher incentive to privatize the public firm under the output subsidy than the R&D subsidy. We also show that when the government uses the policy mix of R&D and output subsidies together, it can achieve the first-best allocation, in which the degree of privatization does not influence output subsidies but influences R&D subsidies.

Journal

• Hitotsubashi Journal of Economics

  Hitotsubashi Journal of Economics 58 (2), 163-177, 2017-12

  Hitotsubashi University

Keywords

• mixed duopoly
• partial privatization
• R&D subsidy
• output subsidy

Details

• CRID: 1390290699843130496
• NII Article ID: 120006366901
• NII Book ID: AA00207547
• DOI: 10.15057/28952
• HANDLE: 10086/28952
• ISSN: 0018280x
• Text Lang: en
• Data Source:
  • JaLC
  • IRDB
  • CiNii Articles
  • KAKEN
• Abstract License Flag: Allowed