Working Paper No. 604

Endogenous Asset Ownership Structures in Deregulated Markets

Published: October 27, 2003Pages: 33Keywords: Privatization; Ownership; FDI; Auctions; Employment GuaranteesJEL-codes: D44; F23; L10; L40

Endogenous Asset Ownership Structures in Deregulated Markets Pehr-Johan Norbäck and Lars Persson

This paper determines the equilibrium ownership structure in an emerging market deregulated by privatization and investment liberalization. It is shown that bidding competition in the privatization stage is necessary but not sufficient for reaching an efficient equilibrium market structure. Competition in the ensuing entry stage is also necessary. Otherwise, one firm can induce another to take the role of the weak firm in the subsequent product market competition, by making concessions in the bidding in the privatization auction. It is also shown that Employment Guarantees may "help" the buyer of the privatized firm "abstain" from investing and by that creating a less competitive market structure.


Pehr-Johan Norbäck


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Mob: +46 73 547 3379

Lars Persson


Ph: +46 8 665 4504

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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