MARKET-DEMAND BOOSTING AND PRIVATIZATION IN A MIXED DUOPOLY

ABSTRACT This study incorporates demand‐boosting strategies into a mixed duopoly model in order to consider the endogenous determination of market demand. The results indicate equilibrium characteristics that differ from those found under an exogenous demand setting. As consumers become more sensiti...

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Bibliographic Details
Published inBulletin of economic research Vol. 64; no. 1; pp. 125 - 134
Main Authors Han, Lihua, Ogawa, Hikaru
Format Journal Article
LanguageEnglish
Published Oxford, UK Blackwell Publishing Ltd 01.01.2012
Subjects
Case studies
Consumer demand
Demand
Duopoly
Economic models
L33
M37
market-demand boosting
mixed duopoly
Privatization
Strategic management
Studies
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Summary:ABSTRACT This study incorporates demand‐boosting strategies into a mixed duopoly model in order to consider the endogenous determination of market demand. The results indicate equilibrium characteristics that differ from those found under an exogenous demand setting. As consumers become more sensitive to the demand‐boosting strategies of firms, the government must choose a lower level of privatization. This suggests that the responsiveness of consumer demand to the demand‐boosting strategies of firms constitutes a limiting factor for privatization.
Bibliography:ark:/67375/WNG-J1QLQCN9-D
istex:4205607D875673F9A7DD09722E428883350FE15B
ArticleID:BOER372
ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0307-3378
1467-8586
DOI:10.1111/j.1467-8586.2010.00372.x