BERTRAND COMPETITION IN A MIXED DUOPOLY MARKET.

We present a simple Bertrand competition model with a Hotelling ( Economic Journal, Vol. 39 (1929), pp. 41–57) type spatial competition by incorporating the framework of partial privatization developed by Bös ( Privatization: A Theoretical Treatment, Oxford, Clarendon Press, 1991). We investigate simultaneous price choice and sequential price choice with respect to fixed locations of firms and show how the degree of privatization of a public firm influences social welfare in a mixed duopoly market. We also analyse sequential price competition with respect to the location choice of firms. [ABSTRACT FROM AUTHOR]