摘要：In a mixed quantity-setting oligopoly, we investigate the welfare effects of privatization in the presence of an optimal
output subsidy. We find that the privatization neutrality result is not satisfied whenever there is at least some
cooperation between the private firms. Our result suggests that the degree of cooperation between private firms
reduces the government incentives to privatize the public firm. In addition, if a consumer surplus bias of the public
firm is considered, the privatization neutrality result does not hold either, and the incentives to privatize the public firm
are further reduced.
