Switching to Green: The Timing of Socially Responsible Innovation

Alberto Galasso and Mihkel Tombak

Journal of Economics & Management Strategy, 2014, vol. 23, issue 3, 669-691

Abstract: We develop a timing game for adopting a product technology that features a public good. We investigate the effects of the degree of product market competition, product differentiation, the private benefits from contributing to the public good, and firm asymmetries on the timing of adoption. We then examine the effects of consumer subsidies on equilibrium timings and the proliferation of the public good.

Date: 2014
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