A Theory of Partial Sales And Underpricing in Privatizations

Cover A Theory of Partial Sales And Underpricing in Privatizations
A Theory of Partial Sales And Underpricing in Privatizations
Fernando Branco
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Fix a non- separating equilibrium and let aji), ■ ■ •, Q(„) be the values of a that can be chosen with positive proba- bility, labeled in such a way that Q(ij f^'((d, 0, 0). (l. L. I). (5, (l|a, ---. Q, n, ), 52(l|aa)---. A(n)))) so that the uncommitted government does not strictly prefer to fully privatize the firm. . Moreover L'''((a. 0. Q). (l. L. L), (5i(l|a, „, ---. A, „, ), 52(l|a, ---. A, „)))) > f^V" ) (A. I3) because with the strategy profile a' . If the firm is fully privatized at da...te 1, the uncommitted government is perfectly identified, '^hen define Qj as the solution to L''-'((d, 0, 0), (l, l.

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