Olivier Debande

Deregulating and privatizing statutory monopolies

Abstract Considering an homogeneous goods Cournot framework with cost asymmetries between the regulated incumbent and the unregulated entrant, this paper investigates the welfare effects of market liberalization and privatization. The positive efficiency effects of market liberalization depends on reallocation of the production between firms and on the extent of the “output distortion” due to the existence of imperfect information. More competition in a previously statutory monopoly reduces the cost of imperfect information. In terms of social welfare, we derive conditions on the desirability of entry and show that privatization is complementary to deregulation, i.e. privatization makes entry more desirable.

Film Finance: The Role of Private Investors in the European Film Market

This chapter explores the conditions under which a more active role of private investors may substantiate the external financing of the European film industry. In Europe, this industry is characterised by its reliance on public support schemes. While the existing market structure of the European film industry—strong prevalence of SMEs and mid-cap companies—and the nature of the production function might justify a public sector intervention, this chapter argues that the characteristics of the financial markets in Europe, mainly based on financing by banks, has not facilitated the emergence of an active private class of investors.