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dc.contributor.authorLaine, Liisa
dc.contributor.authorMa, Ching-to Albert
dc.date.accessioned2017-09-06T07:32:31Z
dc.date.available2020-09-01T21:35:08Z
dc.date.issued2017
dc.identifier.citationLaine, L., & Ma, C.-t. (2017). Quality and competition between public and private firms. <em>Journal of Economic Behavior and Organization</em>, 140, 336-353. <a href="https://doi.org/10.1016/j.jebo.2017.05.012">doi:10.1016/j.jebo.2017.05.012</a>
dc.identifier.otherTUTKAID_74884
dc.identifier.urihttps://jyx.jyu.fi/handle/123456789/55284
dc.description.abstractWe study a multistage, quality-then-price game between a public firm and a private firm. The market consists of a set of consumers who have different quality valuations. The public firm aims to maximize social surplus, whereas the private firm maximizes profit. In the first stage, both firms simultaneously choose qualities. In the second stage, both firms simultaneously choose prices. Consumers’ quality valuations are drawn from a general distribution. Each firm's unit production cost is an increasing and convex function of quality. There are multiple equilibria. In some, the public firm chooses a low quality, and the private firm chooses a high quality. In others, the opposite is true. We characterize subgame-perfect equilibria. Equilibrium qualities are often inefficient, but under some conditions on consumer valuation distribution, equilibrium qualities are first best. Various policy implications are drawn.
dc.language.isoeng
dc.publisherElsevier
dc.relation.ispartofseriesJournal of Economic Behavior and Organization
dc.subject.otherprice-quality competition
dc.subject.otherquality
dc.subject.otherpublic firm
dc.subject.otherprivate firm
dc.subject.othermixed oligopoly
dc.titleQuality and competition between public and private firms
dc.typearticle
dc.identifier.urnURN:NBN:fi:jyu-201709043658
dc.contributor.laitosKauppakorkeakoulufi
dc.contributor.laitosSchool of Business and Economicsen
dc.contributor.oppiaineBasic or discovery scholarship
dc.contributor.oppiaineTaloustiede
dc.type.urihttp://purl.org/eprint/type/JournalArticle
dc.date.updated2017-09-04T12:15:12Z
dc.type.coarjournal article
dc.description.reviewstatuspeerReviewed
dc.format.pagerange336-353
dc.relation.issn0167-2681
dc.relation.volume140
dc.type.versionacceptedVersion
dc.rights.copyright© 2017 Elsevier Ltd. This is a final draft version of an article whose final and definitive form has been published by Elsevier. Published in this repository with the kind permission of the publisher.
dc.rights.accesslevelopenAccessfi
dc.relation.doi10.1016/j.jebo.2017.05.012


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