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Environmental corporate social responsibility: A note on the first-mover advantage under price competition

Kosuke Hirose (), Sang-Ho Lee () and Toshihiro Matsumura ()

Economics Bulletin, 2017, vol. 37, issue 1, 214-221

Abstract: We consider a model in which two firms choose whether to adopt environmental corporate social responsibility policies and then face Stackelberg competition under price competition. We show that the first-mover has the advantage, which is in contrast to the second-mover advantage typically seen in standard price competition models.

Keywords: corporate social responsibility; implicit carbon price; first-mover advantage (search for similar items in EconPapers)
JEL-codes: M1 Q5 (search for similar items in EconPapers)
Date: 2017-01-26
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