Network externalities and corporate social responsibility

Luciano Fanti and Domenico Buccella

Economics Bulletin, 2016, vol. 36, issue 4, 2043-2050

Abstract: This paper examines a duopoly market with Corporate Social Responsibility (CSR) firms (sensitive to consumer surplus). It is shown that, in contrast to the conventional result that the higher the weight on CSR the lower the firms' profitability, when network externalities in consumption are present even the firms' profitability may be enhanced by the presence of social concerns. This finding opens a new view of CSR rules by the most worldwide engaged in social activities firms that operate in the more and more increasing sectors of network goods.

Keywords: CSR; network effects; duopoly. (search for similar items in EconPapers)
JEL-codes: L1 M1 (search for similar items in EconPapers)
Date: 2016-11-09
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Citations: View citations in EconPapers (14)

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