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Does CSR influence privatization wave?

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  • Ding Chen
  • Leonard F. S. Wang
  • Ji Sun

Abstract

In this paper, we formulate a mixed oligopoly model with many public firms and the consumer's cognition of the CSR activity of private firms. We show that the privatization wave will be beneficial for incumbent firms while harming consumers; more importantly, from the perspective of social welfare, consumer cognition on CSR will suppress any privatization wave, while whether the degree of “Cheap‐Talk” CSR suppresses or boosts the privatization wave depends on the degree of “Cheap‐Talk” CSR and the number of incumbent public firms.

Suggested Citation

  • Ding Chen & Leonard F. S. Wang & Ji Sun, 2023. "Does CSR influence privatization wave?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1088-1097, March.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:2:p:1088-1097
    DOI: 10.1002/mde.3733
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    References listed on IDEAS

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