Optimal privatization boosts social welfare in mixed duopoly competition.
The article explores how social welfare is affected in a market where a partly privatized company and a private company compete in selling different products. The researchers found that when goods are not very similar, social welfare is highest when the partly privatized company leads the competition. On the other hand, when goods are very similar, social welfare is highest when the companies compete at the same time. In this scenario, having the partly privatized company follow the private company never leads to the highest social welfare.