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2021
- ISIDORE Id: 10670/1.e542d0...
- hal: hal-04159754
info:eu-repo/semantics/OpenAccess
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Jean-Marc Zogheib et al., « Public vs. Private Investments In Network Industries », HAL SHS (Sciences de l’Homme et de la Société), ID : 10670/1.e542d0...
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Résumé
We study the competition between a private firm and public firms on prices andinvestment in new infrastructures. While the private firm maximizes its profits,public firms maximize the sum of their profits and consumer surplus, subject to abudget constraint. We consider two scenarios of public intervention, with a nationalpublic firm and with local public firms. In a monopoly benchmark, we find that thenational public firm has the highest coverage and charges a uniform price allowingcross-subsidies between high-cost and low-cost areas. Moreover, the private firmcovers as much as local public firms. In a mixed duopoly, a stronger competitivepressure drives firms' prices up while it drives down (up) the national public (private)firm's coverage.
