Abstract:

The objective of this study is to examine and evaluate mixed oligopoly model from theoretical standpoint. Time is considered as an exogenous factor in classical oligopoly models. The fact that time is an endogenous factor in classical oligopoly markets brings out different implications especially for welfare. A public firm’s competition with a private domestic (or a foreign) firm or both leads to different results. In that type of market, the city where a firm located is circular or linear shape closely affects the locations of the premises of the firm. A public firm must be a follower when price is regulated. A public firm should be follower when it is competing with a domestic private firm and a leader while it is competing with foreign private firm. A public firm should be privatized if it is not a monopoly. In the cases of partial privatization, the less the share of public firm, the more the privatized firms’ efficiency increases. If public firm has an objective of profit maximization instead of welfare maximization, welfare increases

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