EconPapers    
Economics at your fingertips  
 

Corporate social responsibility, entry and optimal privatization in an international mixed market

Qidi Zhang and Leonard F.S. Wang

International Review of Economics & Finance, 2022, vol. 77, issue C, 14-24

Abstract: We formulate a mixed oligopoly in which one public firm competes with two private firms: an established Corporate social responsibility (CSR) firm and a profit-maximizing entrant that could either be domestic or foreign-owned. We find that in an international market, with an increasing degree of CSR, the government might levy a higher tariff to restrict imports from the welfare viewpoint. Furthermore,a third firm entrant is going to increase welfare specially if the firm is domestic. Surprisingly, when the degree of CSR is in a certain range, privatization and tariff are always negatively correlated with CSR. Our findings suggest that differences in objectives between private firms may play an important role in government decisions on optimal privatization policies.

Keywords: Corporate social responsibility (CSR); Privatization; Entry; Import tariff (search for similar items in EconPapers)
JEL-codes: D43 L13 L21 M14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056021001775
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:77:y:2022:i:c:p:14-24

DOI: 10.1016/j.iref.2021.09.001

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-03-12
Handle: RePEc:eee:reveco:v:77:y:2022:i:c:p:14-24