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Ciclo seminarios CEA – MIPP

12:45 horas, Sala Asamblea, Ingeniería Industrial, Torre Oriente (Beauchef 851, 4to piso, Santiago)

El Centro de Economía Aplicada (CEA) y el Instituto Milenio para la Investigación en Imperfecciones de Mercado y Políticas Públicas (MIPP) de la Universidad de Chile invitan a su ciclo de seminarios programados para el primer semestre del año.

Invitado: Felipe Balmaceda, Departamento de Economía, Universidad Diego Portales

Título de la conference: “Public and Private Competition over Quality”

Abstract
We study a two stage, quality-then-price, game between the public sector and private firms with horizontal and vertical differentiation. We consider both for-profit and non-for-profit private firms. There are private firms that receives subsidies and charge prices and  public providers. In the first-stage qualities are simultaneously chosen and then prices are chosen in the same manner. Households’quality valuations are drawn from log-concave distributions.  We derive several interesting results: i) payments falls with the quality of the good in the public sector and households’ valuation of it; (ii) for-profit firms provide higher quality than non-for-profit firms when government budget is small; (iii) the quality of privately provided goods increases with the quality of publicly provided goods. Subsidies to private firms may increase or decrease equilibrium quality.

Más información

Confirmaciones: Olga Barrera / obarrera@dii.uchile.cl