This article explores possible options of the upstream mixed-ownership reform with imperfect substitute products in a vertically related market composed of one upstream SOE and two downstream profit-maximising retaile...This article explores possible options of the upstream mixed-ownership reform with imperfect substitute products in a vertically related market composed of one upstream SOE and two downstream profit-maximising retailers.Its focus is not only on incorporating the issue of privatisation into a vertical market structure,but also on extending the traditional upstream–downstream competition model by allowing the active contribution of retailers to enhance values at different costs.It finds that in a vertically related market where retailers’effort matters,the socially optimal policy towards the upstream SOE is partial privatisation regardless what product differentiation is involved,but the specific degree of privatisation is negatively correlated to the level of effort costs.By contrast,in a vertically related market without retailers’effort,the government tends to choose full nationalisation of the firm.展开更多
基金the Philosophy and Social Science Planning Project of Guangdong Province[Grant No.GD20XYJ07]the Young Innovative Talents Project in General Universities of Guangdong Province[Grant No.2020WQNCX017].
文摘This article explores possible options of the upstream mixed-ownership reform with imperfect substitute products in a vertically related market composed of one upstream SOE and two downstream profit-maximising retailers.Its focus is not only on incorporating the issue of privatisation into a vertical market structure,but also on extending the traditional upstream–downstream competition model by allowing the active contribution of retailers to enhance values at different costs.It finds that in a vertically related market where retailers’effort matters,the socially optimal policy towards the upstream SOE is partial privatisation regardless what product differentiation is involved,but the specific degree of privatisation is negatively correlated to the level of effort costs.By contrast,in a vertically related market without retailers’effort,the government tends to choose full nationalisation of the firm.
