This paper extends the literature on mixed oligopoly in two directions. First, it introduces distortions in the working of the public firm, an issue that is of some concern, especially in transitional economies. Thus the classical model of mixed oligopoly emerges as a special case of our...

In homogenous mixed oligopoly neither full nationalization nor full privatization is optimal under moderate conditions. This paper provides an intuitive geometric explanation to the result by means of best-response functions and iso-social-surplus curves. It is also shown that the optimal degree...

We examine firms' decisions to hire managers in a duopoly where a public firm competes with a foreign private firm. In contrast with the case in which the public firm competes with a domestic private firm -where only the private firm decides to hire a manager- we find that both firms hire...