Arbeitspapier

Nationalization as credible threat against tacit collusion

Within a simple model of differentiated oligopoly, we show that tacit collusion may be prevented by the threat of nationalising a private firm coupled with the appropriate choice of the weight given to private profits in the maximand of the nationalised company. We characterise the properties of such a threat and prove that it may allow to credibly deter tacit collusion.

Language
Englisch

Bibliographic citation
Series: Quaderni - Working Paper DSE ; No. 972

Classification
Wirtschaft
Economics of Eminent Domain; Expropriation; Nationalization
Oligopoly and Other Imperfect Markets
Public Enterprises; Public-Private Enterprises

Event
Geistige Schöpfung
(who)
Delbono, Flavio
Lambertini, Luca
Event
Veröffentlichung
(who)
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
(where)
Bologna
(when)
2014

DOI
doi:10.6092/unibo/amsacta/4091
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Delbono, Flavio
  • Lambertini, Luca
  • Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

Time of origin

  • 2014

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