Price Regulation or Deregulation: Taking the Interest Rate as Example

摘要

We develop a mixed oligopoly vertical relationship model and examine the equilibrium in government pricing and market pricing. Comparing different equilibrium results shows that state-owned enterprises (SOEs) usually obtain more profits by making a lower regulation price. The interest rate liberalization will cut down SOEs' profits, but raise the whole industry chain's profit by raising private enterprises' profits more. Nevertheless, the social value created by the industrial chain will not necessarily increase.