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Article
PRIVATIZATION POLICY WITH CORPORATE SOCIAL RESPONSIBILITY IN A MIXED DUOPOLY1
He Liang, Chaoqun Sun, Jiaqi Gao
ABSTRACT: This paper constructs a mixed duopoly model considering privatization, the level of corporate social responsibility (CSR), and the cost of state-owned shares. It examines the equilibrium results under the Cournot model and the Stackelberg model and makes comparisons. The results show that CSR and state-owned shares have essential effects on equilibrium results. Faced with different types of competition, stakeholders make various decisions. Under the Cournot model, there is an optimal state-owned share proportion. Full privatization is optimal under the Stackelberg model and the expanded three-stage game. Therefore, state-owned shares, CSR, and competition mode should be considered in the privatization policy.
KEYWORDS: duopoly, privatization, corporate social responsibility, state-owned shares.
JEL classification: D23, L13, L33.
1Acknowledgments: The research is supported by Humanities and Social Science Foundation for Young Scholars of Ministry of Education of China (Grant Number: 22YJCZH096).