Abstract
The purpose of this chapter is to analyze how the existence of a corporate social responsibility (CSR) private firm influences the privatization of a public firm in a mixed duopoly model. Furthermore, we compare these results with those generated from the competition between a public firm and a pure private firm, which have been the subject of many discussions. We show that replacing a pure private firm with a CSR private firm increases the consumer surplus, but lowers the privatization ratio of the public firm. This result occurs because the public firm cannot distinguish the output stemming from profit maximization from that related to the CSR considerations of the private firm under a typical Cournot competitive environment.
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Itano, A. (2017). Privatization with a CSR Private Firm. In: Yanagihara, M., Kunizaki, M. (eds) The Theory of Mixed Oligopoly. New Frontiers in Regional Science: Asian Perspectives, vol 14. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55633-6_12
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DOI: https://doi.org/10.1007/978-4-431-55633-6_12
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Online ISBN: 978-4-431-55633-6
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