IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i2p1088-1097.html
   My bibliography  Save this article

Does CSR influence privatization wave?

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3733
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3733?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Quan Dong & Leonard F. S. Wang, 2021. "Profit taxation and the optimal privatisation of state holding corporations," Australian Economic Papers, Wiley Blackwell, vol. 60(3), pages 375-391, September.
    2. Wang, Leonard F.S. & Wang, Jean, 2009. "Environmental taxes in a differentiated mixed duopoly," Economic Systems, Elsevier, vol. 33(4), pages 389-396, December.
    3. Junichi Haraguchi & Toshihiro Matsumura, 2020. "Implicit protectionism via state enterprises and technology transfer from foreign enterprises," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 723-743, August.
    4. Liu, Chih-Chen & Wang, Leonard F.S. & Lee, Sang-Ho, 2015. "Strategic environmental corporate social responsibility in a differentiated duopoly market," Economics Letters, Elsevier, vol. 129(C), pages 108-111.
    5. Constantine Manasakis & Evangelos Mitrokostas & Emmanuel Petrakis, 2013. "Certification of corporate social responsibility activities in oligopolistic markets," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 282-309, February.
    6. Zhang, Qidi & Wang, Leonard F.S., 2022. "Corporate social responsibility, entry and optimal privatization in an international mixed market," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 14-24.
    7. Luciano Fanti & Domenico Buccella, 2018. "Corporate Social Responsibility and Managerial Bonus Systems," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(2), pages 349-365, July.
    8. Liu, Qian & Wang, Leonard F.S. & Chen, Charlie L., 2018. "CSR in an oligopoly with foreign competition: Policy and welfare implications," Economic Modelling, Elsevier, vol. 72(C), pages 1-7.
    9. Ngo Van Long & Frank Stähler, 2009. "Trade policy and mixed enterprises," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(2), pages 590-614, May.
    10. Leonard F. S. Wang & Ya-chin Wang & Lihong Zhao, 2009. "Privatization and the Environment in a Mixed Duopoly with Pollution Abatement," Economics Bulletin, AccessEcon, vol. 29(4), pages 3112-3119.
    11. Leonard F. S. Wang & Ya‐Chin Wang & Lihong Zhao, 2009. "Privatization And Efficiency Gain In An International Mixed Oligopoly With Asymmetric Costs," The Japanese Economic Review, Japanese Economic Association, vol. 60(4), pages 539-559, December.
    12. Mizutani, Fumitoshi & Uranishi, Shuji, 2003. "The Post Office vs. Parcel Delivery Companies: Competition Effects on Costs and Productivity," Journal of Regulatory Economics, Springer, vol. 23(3), pages 299-319, May.
    13. Dong, Quan & Wang, Leonard F.S., 2019. "Mixed oligopoly with state holding corporations and consumer-friendly firm," International Review of Economics & Finance, Elsevier, vol. 62(C), pages 121-130.
    14. Ee, Mong Shan & Chao, Chi-Chur & Wang, Leonard F.S. & Yu, Eden S.H., 2018. "Environmental corporate social responsibility, firm dynamics and wage inequality," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 63-74.
    15. Quan Dong & Juan Carlos Bárcena†Ruiz & María Begoña Garzón, 2018. "Partial Privatization of State Holding Corporations," Manchester School, University of Manchester, vol. 86(1), pages 119-138, January.
    16. Pu‐yan Nie & Chan Wang & Yan Meng, 2019. "An analysis of environmental corporate social responsibility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(4), pages 384-393, June.
    17. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    18. Luciano Fanti & Domenico Buccella, 2017. "Corporate social responsibility, profits and welfare with managerial firms," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(4), pages 341-356, December.
    19. Junichi Haraguchi & Toshihiro Matsumura, 2020. "Optimal privatization policy with asymmetry among private firms," Bulletin of Economic Research, Wiley Blackwell, vol. 72(3), pages 213-224, July.
    20. Xingtang Wang & Leonard F. S. Wang, 2022. "Corporate social responsibility, vertical product differentiation, and privatization policy," The Japanese Economic Review, Springer, vol. 73(2), pages 403-425, April.
    21. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    22. Luciano Fanti & Domenico Buccella, 2018. "Profitability of corporate social responsibility in network industries," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(3), pages 271-289, September.
    23. Seung-Leul Kim & Sang-Ho Lee & Toshihiro Matsumura, 2019. "Corporate social responsibility and privatization policy in a mixed oligopoly," Journal of Economics, Springer, vol. 128(1), pages 67-89, September.
    24. Leonard Wang & Tai-Liang Chen, 2010. "Do cost efficiency gap and foreign competitors matter concerning optimal privatization policy at the free entry market?," Journal of Economics, Springer, vol. 100(1), pages 33-49, May.
    25. Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
    26. Toshihiro Matsumura & Osamu Kanda, 2005. "Mixed Oligopoly at Free Entry Markets," Journal of Economics, Springer, vol. 84(1), pages 27-48, February.
    27. Yoshihiro Tomaru & Leonard F. S. Wang, 2018. "Optimal Privatization and Subsidization Policies in a Mixed Duopoly: Relevance of a Cost Gap," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 174(4), pages 689-706, December.
    28. Junichi Haraguchi & Toshihiro Matsumura, 2016. "Cournot–Bertrand comparison in a mixed oligopoly," Journal of Economics, Springer, vol. 117(2), pages 117-136, March.
    29. Chi‐Chur Chao & Eden S. H. Yu, 2006. "Partial Privatization, Foreign Competition, and Optimum Tariff," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 87-92, February.
    30. Fanti, Luciano & Buccella, Domenico, 2018. "Corporate social responsibility and the choice of price versus quantities," Japan and the World Economy, Elsevier, vol. 48(C), pages 71-78.
    31. Juan Carlos Bárcena-Ruiz & Quan Dong & Leonard F. S. Wang, 2020. "Foreign-owned firms and partial privatization of state holding corporations," The Japanese Economic Review, Springer, vol. 71(2), pages 287-301, April.
    32. Chan Wang & Pu‐yan Nie & Yan Meng, 2018. "Duopoly Competition with Corporate Social Responsibility," Australian Economic Papers, Wiley Blackwell, vol. 57(3), pages 327-345, September.
    33. Duan, Lian, 2017. "Optimal degree of privatization in a mixed oligopoly with multiple public enterprises," MPRA Paper 82896, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leal, Mariel & García, Arturo & Lee, Sang-Ho, 2021. "Strategic CSR and merger decisions in multiproduct mixed markets with state-holding corporation," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 319-333.
    2. Arturo Garcia & Mariel Leal & Sang-Ho Lee, 2021. "Competitive CSR in a strategic managerial delegation game with a multiproduct corporation," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(3), pages 301-330, September.
    3. Juan Carlos Bárcena-Ruiz & María Begoña Garzón, 2020. "Partial privatization in an international mixed oligopoly under product differentiation," Journal of Economics, Springer, vol. 131(1), pages 77-100, September.
    4. Zhang, Qidi & Wang, Leonard F.S., 2022. "Corporate social responsibility, entry and optimal privatization in an international mixed market," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 14-24.
    5. Xingtang Wang & Leonard F. S. Wang, 2024. "Corporate social responsibility and tariff policy in a differentiated mixed duopoly," Bulletin of Economic Research, Wiley Blackwell, vol. 76(2), pages 470-487, April.
    6. Xia Wang & Tingting Tan & Mingqing Xing, 2022. "Environmental awareness of the private firm and optimal privatization in a mixed duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 4055-4063, December.
    7. Leal, Mariel & Garcia, Arturo & Lee, Sang-Ho, 2020. "Strategic CSR and merger in multiproduct mixed markets with state-holding corporation," MPRA Paper 102351, University Library of Munich, Germany, revised 10 Aug 2020.
    8. Xingtang Wang & Leonard F. S. Wang, 2022. "Corporate social responsibility, vertical product differentiation, and privatization policy," The Japanese Economic Review, Springer, vol. 73(2), pages 403-425, April.
    9. Junichi Haraguchi & Toshihiro Matsumura, 2021. "Profit‐enhancing entries in mixed oligopolies," Southern Economic Journal, John Wiley & Sons, vol. 88(1), pages 33-55, July.
    10. Chokri Aloui & Khaïreddine Jebsi, 2022. "Does corporate social responsibility solve the chicken‐and‐egg problem for a two‐sided platform?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 3235-3256, October.
    11. Yi Liu & Toshihiro Matsumura & Chenhang Zeng, 2021. "The relationship between privatization and corporate taxation policies," Journal of Economics, Springer, vol. 133(1), pages 85-101, June.
    12. Ya‐Po Yang & Qidi Zhang & Leonard F. S. Wang, 2022. "Tariff simplification, privatization, and welfare superiority," Metroeconomica, Wiley Blackwell, vol. 73(2), pages 683-707, May.
    13. Wen, Jun & Diao, Yu & Wang, Leonard F. S. & Sun, Ji, 2022. "Privatization, entry and corporate social responsibility with consumer cognition," MPRA Paper 115169, University Library of Munich, Germany.
    14. Arghya Ghosh & Manipushpak Mitra & Bibhas Saha, 2015. "Privatization, Underpricing, and Welfare in the Presence of Foreign Competition," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(3), pages 433-460, June.
    15. Ryu, Han Eol, 2023. "Public utility ownership and in-kind trade policy in vertically related markets," Utilities Policy, Elsevier, vol. 81(C).
    16. Seung-Leul Kim & Sang-Ho Lee & Toshihiro Matsumura, 2019. "Corporate social responsibility and privatization policy in a mixed oligopoly," Journal of Economics, Springer, vol. 128(1), pages 67-89, September.
    17. Wang, Leonard F.S. & Chen, Tai-Liang, 2011. "Mixed oligopoly, optimal privatization, and foreign penetration," Economic Modelling, Elsevier, vol. 28(4), pages 1465-1470, July.
    18. Haraguchi, Junichi & Matsumura, Toshihiro, 2020. "Common Ownership among Private Firms and Privatization Policies," MPRA Paper 102152, University Library of Munich, Germany.
    19. Quan Dong & Juan Carlos Bárcena-Ruiz, 2021. "Corporate social responsibility and partial privatisation of state holding corporations," Journal of Economics, Springer, vol. 132(3), pages 223-250, April.
    20. Xu, Lili & Lee, Sang-Ho, 2021. "Strategic Corporate Social Responsibility by a Multinational Firm and International Privatization Policies," MPRA Paper 105651, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:44:y:2023:i:2:p:1088-1097. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.