characterizes China's state sector. The model demonstrates the nature of the bargain between the principals (i.e., officials from … China's State Asset Council) and the agents (large-SOE managers). We derive an indifference payoff point, which maximizes … party in the game. This condition helps to explain the inability of China's political economy system to privatize …

of large state-owned enterprises (SOEs) in China. Our model shows that the delegation of decision making authority to SOE … of the party-committee control within large SOEs in China …