International Journal of Management, Accounting and Economics
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Volume 5, No. 6, June 2018 Pages: 411 - 416
Reaction Functions under Quantity Competition in International Mixed Triopolies
This paper considers an economy in which a state-owned public firm, a domestic private firm and a foreign private firm compete in output levels. The paper examines the firms’ reaction functions in the economy. As a result of this analysis, the paper shows that there is a mixed triopoly in which the state-owned public firm acts as a strategic complementor to the domestic private firm’s output, that is, its reaction function is upward sloping.
Reaction functions, Quantity competition, State-owned public firm, Domestic private firm, Foreign private firm
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