The economics of bottomless pits

We don't know how government ownership affect the behaviour of privately owned firms

Many Indian economists are unaware, because they have not been taught, that until the Second World War economics focused mainly on the behaviour of firms under different degrees and kinds of competition. 

What was not factored in in those theories was the presence of firms with access to tax payers’ money because in those days in Europe and America the notion of government-owned companies did not quite exist.

But now it does and we need to ask: how has government ownership affected and influenced the behaviour of privately-owned firms? Is there any theory to describe this? What is the economic theory of