Unité mixte de recherche 7235

Public vs. Private Investments In Network Industries

Jean-Marc Zogheib, Marc Bourreau

We study the competition between a private firm and public firms on prices and investment in new infrastructures. While the private firm maximizes its profits, public firms maximize the sum of their profits and consumer surplus, subject to a budget constraint. We consider two scenarios of public intervention, with a national public firm and with local public firms. In a monopoly benchmark, we find that the national public firm has the highest coverage and charges a uniform price allowing cross-subsidies between high-cost and low-cost areas. Moreover, the private firm covers as much as local public firms. In a mixed duopoly, a stronger competitive pressure drives firms’ prices up while it drives down (up) the national public (private) firm’s coverage.[en]We study the competition between a private firm and public firms on prices and investment in new infrastructures. While the private firm maximizes its profits, public firms maximize the sum of their profits and consumer surplus, subject to a budget constraint. We consider two scenarios of public intervention, with a national public firm and with local public firms. In a monopoly benchmark, we find that the national public firm has the highest coverage and charges a uniform price allowing cross-subsidies between high-cost and low-cost areas. Moreover, the private firm covers as much as local public firms. In a mixed duopoly, a stronger competitive pressure drives firms’ prices up while it drives down (up) the national public (private) firm’s coverage.[/en]

AGENDA

mardi 30 novembre 2021

Recherches en Economie Politique et Institutionnaliste (REPI)

Emmanuel Petit (Université de Bordeaux GREThA)

Habit and emotion: John Dewey’s contribution to the theory of change

mardi 30 novembre 2021

Développement Durable Environnement et Energie (DDEE)

Thomas Baudin (IESEG, School of Managment, LEM Lille)

16h-17h

The Rural Exodus and the Rise of Europe

jeudi 2 décembre 2021

Lunch

Lionel Ragot

Assessing the role of immigration policy for foreign students: the case of Campus France

mardi 7 décembre 2021

Recherches en Economie Politique et Institutionnaliste (REPI)

Benjamin Lemoine (Université Paris Dauphine, PSL)

La souveraineté en négociation : droit, finance internationale et restructuration de dettes

jeudi 9 décembre 2021

Doctorants

Lorenzo Garlanda-Longueville

Why do banks have so much assets in tax havens ?

lundi 13 décembre 2021

LIEN : Law, Institutions and Economics in Nanterre

Andrea Mantovani (Toulouse Business School - Univ of Bologna)

Salle G413A

Regulating Platform Fees Under Price Parity

mercredi 15 décembre 2021

Économies du monde musulman

Roger Albinyana (Faculty of Economics of the University of Barcelona)

14h30-16h30

Energy Interdependence. The Political Economy of Algeria’s Natural Gas and the Natural Gas Value Chain in the Western Mediterranean (1990-2015)

jeudi 16 décembre 2021

Lunch

Michel Lelart

Intervention sur la microfinance