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Optimal zoning of a mixed duopoly
Abstract This paper studies the optimal zoning of a mixed duopoly when the objective function of the public firm is a weighted sum of its profits and social surplus. We find that a regulator may attain the optimal locations of both firms by restricting the location of the private firm only. There is no need to limit the location of the public firm. In contrast, in a private duopoly, the regulator needs to restrict the locations of both firms.
Optimal zoning of a mixed duopoly
Abstract This paper studies the optimal zoning of a mixed duopoly when the objective function of the public firm is a weighted sum of its profits and social surplus. We find that a regulator may attain the optimal locations of both firms by restricting the location of the private firm only. There is no need to limit the location of the public firm. In contrast, in a private duopoly, the regulator needs to restrict the locations of both firms.
Optimal zoning of a mixed duopoly
Bárcena Ruiz, Juan Carlos (Autor:in) / Casado-Izaga, F. Javier (Autor:in) / Hamoudi, Hamid (Autor:in)
2013
Aufsatz (Zeitschrift)
Englisch
Optimal zoning of a mixed duopoly
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