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posted on 03.02.2009by Maria Jose Gil-Molto, Joanna Poyago-Theotoky, Vasileios Zikos
We introduce R&D activity and R&D subsidies in the context of a mixed oligopoly and evaluate the effects of privatization on welfare. We show that when R&D subsidies are employed, privatization is welfare and R&D promoting provided that the number of competitors is sufficiently large.