Footnote:
In: International Review of Economics and Finance, doi:10.1016/j.iref.2016.01.006
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 27, 2015 erstellt
Description:
In a successive duopoly in which all firms are private except the home upstream SOE, we show that if the SOE is less efficient than its foreign rival, the home managerial delegation policy will force the SOE to price below marginal cost; otherwise, it will resort to marginal cost pricing to force out its rival. Both upstream firms will not be pure profit maximizers and will compete in profit and sales. The home government will subsidize its downstream firm if the market is large or the foreign rival's output is small. The foreign government will always subsidize its downstream firm