The present paper adds a new dimension to the literature on mixed oligopolies by introducing managerial discretion in state owned enterprises (SOEs). The resulting inefficiency has led policymakers to consider the options of privatization and liberalization, and these issues are sought to be modeled in the paper. In our paper, the manager of the SOE pursues his own interest by choosing the cost function. The explicit modeling of managerial discretion allows us to rank different post-reform market structures both in terms of social welfare and managerial utility.
|Number of pages||8|
|Journal||The Indian Journal of Economics|
|Publication status||Published - 2002|