The optimal level of corporate social responsibility based on the duopoly model

Junlong Chen, Chaoqun Sun, Jiali Liu and Yan Huo

Managerial and Decision Economics, 2021, vol. 42, issue 1, 177-184

Abstract: This paper constructs a duopoly model considering corporate social responsibility (CSR) and market's sensitivity to CSR (e) and analyzes the equilibrium results, the condition of CSR implementation and the optimal CSR level (β*) of Model CC (two enterprises implement CSR) and Model CN (only one enterprise implements CSR). The results show that β* is affected by competitors and e. e, marginal cost (c) and cost difference affect the equilibrium results and the comparative results. Reducing c and improving e can promote social welfare. Consumer surplus under Model CC is highest. CSR has a negative effect on social welfare under certain conditions.

Date: 2021
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https://doi.org/10.1002/mde.3222

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:42:y:2021:i:1:p:177-184

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