The article explores how different types of firms compete in a market, focusing on how privatization affects their behavior. The researchers found that privatization can lead to less investment by firms, resulting in more similar products. Public firms are more likely to invest in making unique products when considering social welfare, while private firms invest more when competition is based on prices. Partial privatization can be beneficial when firms compete in quantities and product differentiation is moderately effective, but complete nationalization is better when competition is based on prices.