All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Kadohognon sylvain Ouattara
''Strategic privatization in a mixed duopoly with a socially responsible firm''
( 2017, Vol. 37 No.3 )
This paper examines the impact of Corporate Social Responsibility (CSR) on privatization in a mixed duopoly consisting of one public firm and one Socially Responsible firm (SR firm). Two types of ownership of the SR firm are considered: (D) the SR firm is owned by domestic private investors and (F) it is owned by foreign private investors. Our model suggests that when considering the extent of privatization, the policy makers should account for two influences: the level of CSR and the nationality of the SR firm. Our results show that government should decrease the degree of privatization if the level of CSR increases. Furthermore, if the level of CSR is high enough, the optimal degree of privatization in an international mixed duopoly is higher than that obtained in a domestic mixed duopoly. This is in contrast to the standard mixed duopoly without CSR activities.
Keywords: Corporate social responsibility; Partial privatization, Cournot competition; Social welfare
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
L3 - Nonprofit Organizations and Public Enterprise: General
Manuscript Received : Apr 13 2017 Manuscript Accepted : Sep 04 2017

  This abstract has been downloaded 1356 times                The Full PDF of this paper has been downloaded 153775 times