Effects of partial passive ownership on the desirable production timing of the public utility in a mixed upstream market
Lili Xu,
Yidan Zhang,
Sang‐Ho Lee
Abstract:We consider partial passive ownership (PPO) between upstream and downstream private firms and examine an endogenous production timing of a public utility in a mixed upstream market. We show that the production timing will shift from simultaneous to sequential as the PPO level decreases when the private share of the public utility ownership is low, which is mostly socially desirable. We also show that a higher private share does not yield socially desirable production timing irrespective of the PPO level, while… Show more
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