Competition and privatization

Publication:
Competition and privatization

dc.affiliation.dpto	UC3M. Departamento de Economía	es
dc.contributor.author	Díaz, Antonia
dc.contributor.author	Faulí-Oller, Ramón
dc.contributor.other	IVIE
dc.date.accessioned	2009-08-18T14:16:14Z
dc.date.available	2009-08-18T14:16:14Z
dc.date.issued	1999
dc.description.abstract	In this paper we study the interaction between privatization and competition (liberalization)in the market. Privatization is understood as a change in the objetive of the owners of the firm. A public firm maximizes social welfare and a private firme maximizes profits. We find that this difference in objectives matters less the greater the level of competition because then the behavior of a wealfare maximizing firm converges to the behavior of a profit maximizing firm. This result implies that provatization work better the greater the competition. On the other hand, the revenue obtained from privatization are decreasing with the level of competition. This implies that privatization aimed to raise revenues impose a cost in terms of allocative efficiency.
dc.format.mimetype	application/pdf
dc.identifier.uri	https://hdl.handle.net/10016/4941
dc.language.iso	eng
dc.relation.ispartofseries	Working paper
dc.relation.ispartofseries	WP-AD 99-13
dc.rights.accessRights	open access
dc.subject.eciencia	Economía
dc.subject.other	Privatization
dc.subject.other	Liberalization
dc.title	Competition and privatization
dc.type	working paper	*
dspace.entity.type	Publication

Now showing 1 - 1 of 1