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A Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences
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A Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences

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  • Hend Ghazzai

    (UR MASE - Modélisation et Analyse Statistique et Economique - ESSAIT - Ecole Supérieure de la Statistique et de l'Analyse de l'Information - UCAR - Université de Carthage (Tunisie))

  • Wided Hemissi
  • Rim Lahmandi-Ayed

    (UR MASE - Modélisation et Analyse Statistique et Economique - ESSAIT - Ecole Supérieure de la Statistique et de l'Analyse de l'Information - UCAR - Université de Carthage (Tunisie))

  • Sana Mami Kefi

Abstract

This note extends the results already obtained by Khaloul et al. (2017) on the majority vote between monopoly and duopoly by a heterogeneous population composed of individuals who are potentially consumers, workers, and shareholders to the general case where firms are owned by a given proportion of the population. Results show that duopoly is preferred when non-shareholders constitute a majority of the population. Otherwise, the majority vote depends on the relative dispersion of the individuals with respect to their intensity of preference for quality and their sensitivity to effort.

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  • Hend Ghazzai & Wided Hemissi & Rim Lahmandi-Ayed & Sana Mami Kefi, 2021. "A Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences," Post-Print hal-02480175, HAL.
    • Handle: RePEc:hal:journl:hal-02480175
    Note: View the original document on HAL open archive server: https://hal.science/hal-02480175v2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Imperfect Competition; Democracy; Vertical Differentiation; General Equilibrium;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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