COURNOT AND STACKELBERG EQUILIBRIUM IN MIXED OLIGOPOLY MODELS

摘要

This research investigates the Stackelberg mixed oligopoly model, where a state-owned public firm maximizing domestic social surplus and foreign firms compete. Comparisons of profits and domestic social surplus in the different Stackelberg games are done. Based in these comparisons the desirable role (either leader or follower) of each firm according to their optimal reaction at the Cournot equilibrium, either weak or strong, is evaluated. Also, results of the comparison of the domestic social surplus between different mixed oligopoly and domestic monopoly scenarios are presented. This theoretical development is presented to initiate a discussion on what constitutes the proper way to address the issue of "benefit to society" in mixed oligopolistic economies.