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2008•RePEc: Research Papers in EconomicsRequires access

Public monopoly, mixed oligopoly and productive efficiency: a generalization

Susumu Cato

Open publisher page 6 citations

Abstract

The paper considers a cost-reducing investment by the public sector. We compare the investment in the public monopoly to that in the mixed oligopoly. Without specifications of the demand and cost functions, we show that the investment in the public monopoly is higher thanthat in the mixed oligopoly. Our result is a generalization of the result of Nishimori and Ogawa (2002), which investigate the effects of deregulation on the public sector's investment by assuming the linear demand and linear cost functions.

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The paper considers a cost-reducing investment by the public sector. We compare the investment in the public monopoly to that in the mixed oligopoly. Without specifications of the demand and cost functions, we show that the investment in the public monopoly is higher thanthat in the mixed oligopoly. Our result is a generalization of the result of Nishimori and Ogawa (2002), which investigate the effects of deregulation on the public sector's investment by assuming the linear demand and linear cost functions.

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Available abstract

The paper considers a cost-reducing investment by the public sector. We compare the investment in the public monopoly to that in the mixed oligopoly. Without specifications of the demand and cost functions, we show that the investment in the public monopoly is higher thanthat in the mixed oligopoly. Our result is a generalization of the result of Nishimori and Ogawa (2002), which investigate the effects of deregulation on the public sector's investment by assuming the linear demand and linear cost functions.

Key concepts: Monopoly, Oligopoly, Microeconomics, Economics, Generalization, Investment (military), Deregulation, Public sector

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