Name of the Asset | Privatization and Technology Licensing in Mixed Oligopoly
Type of Asset | Research
Date | January 2026
DOI | 10.69814/wp/2025107
SUMMARY
This paper examines the optimal privatization decision in a mixed oligopoly where technology transfer takes place from a cost-efficient foreign private firm to a cost-inefficient domestic public firm via two-part tariff licensing. Partial privatization is possible under Bertrand competition. Partial or full privatization is found optimal under Cournot competition based on the cost differential even with constant returns to scale technology, product differentiation and two-part tariff licensing. This paper has also investigated the relation between the optimal degree of privatization and the degree of product substitutability for a given cost differential in case of both competitions.
AUTHORS | Sayan Chakravarty, Arindam Paul, Swadpnendu Banerjee
COUNTRY AND/OR REGION | India
PROGRAMME | Global Development Conference 2025: Call for Papers
