A MIXED OLIGOPOLY IN THE PRESENCE OF FOREIGN PRIVATE FIRMS

In this paper a mixed oligopoly model is considered, in which a state- owned public firm competes with both domestic and foreign private firm s. Previous articles on mixed oligopoly did not include foreign privat e firms. The effect on the equilibrium involves a lower price and a di fferent allocation of production (relative to the case when all privat e firms are domestically owned). In addition, issues such as the effec ts of an open door policy allowing foreign firms to enter and the effe cts of foreign acquisition of domestic firms are discussed.