Partial Ownership For The Public Firm And Competition Academic Article uri icon


  • This paper investigates the issue of partial ownership (partial privatization) of a stateowned public enterprise. We elaborate on the framework of Matsumura (1998) by allowing for managerial inefficiency, and show that under moderate conditions partial ownership is a reasonable choice of government in a monopoly market as well as in a mixed duopoly market, where a public firm competes with a profit-maximizing private firm. We also provide some economic rationale on the result that neither full privatization nor full nationalization is optimum.

published proceedings

  • The Japanese Economic Review

author list (cited authors)

  • Lee, S., & Hwang, H.

citation count

  • 36

complete list of authors

  • Lee, Sang‐Ho||Hwang, Hae‐Shin

publication date

  • September 2003