{"title":"A mixed duopoly input market: uniform pricing versus spatial price discrimination","authors":"John S. Heywood, Zerong Wang, Guangliang Ye","doi":"10.1007/s00712-024-00883-w","DOIUrl":null,"url":null,"abstract":"<p>We uniquely model an upstream mixed duopoly engaging in either uniform pricing or spatial price discrimination when facing a continuum of downstream firms. Uniform pricing generates higher welfare with a fully public firm. Uniform pricing generates greater optimal partial privatization except when the cost disadvantage of the public firm is large and downstream cost convexity is large. Similarly, welfare under optimal partial privatization is larger under uniform pricing except when the cost disadvantage of the public firm is relatively large and downstream cost convexity is large. Thus, the implications of the pricing scheme depend critically on the upstream and downstream cost structure and the ownership structure.</p>","PeriodicalId":47523,"journal":{"name":"Journal of Economics","volume":"155 1","pages":""},"PeriodicalIF":1.6000,"publicationDate":"2024-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Economics","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1007/s00712-024-00883-w","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
We uniquely model an upstream mixed duopoly engaging in either uniform pricing or spatial price discrimination when facing a continuum of downstream firms. Uniform pricing generates higher welfare with a fully public firm. Uniform pricing generates greater optimal partial privatization except when the cost disadvantage of the public firm is large and downstream cost convexity is large. Similarly, welfare under optimal partial privatization is larger under uniform pricing except when the cost disadvantage of the public firm is relatively large and downstream cost convexity is large. Thus, the implications of the pricing scheme depend critically on the upstream and downstream cost structure and the ownership structure.
期刊介绍:
Specializing in mathematical economic theory, Journal of Economics focuses on microeconomic theory while also publishing papers on macroeconomic topics as well as econometric case studies of general interest. Regular supplementary volumes are devoted to topics of central importance to both modern theoretical research and present economic reality. Fields of interest: applied economic theory and ist empirical testing.Officially cited as: J Econ