Strategic environmental corporate social responsibility in a differentiated duopoly market

Chih-Chen Liu, Leonard F.S. Wang and Sang-Ho Lee

Economics Letters, 2015, vol. 129, issue C, 108-111

Abstract: This paper investigates the impacts of competition structures on firms’ incentives for adopting strategic environmental corporate social responsibility (ECSR) certified by a Non-Governmental Organization. We show that, to induce firms to adopt certified ECSR, the certifier will set a standard lower than the optimal one, and the standard in Cournot competition is higher than that in Bertrand competition. Finally, we show that firms and consumers benefit from firms’ certified ECSR.

Keywords: Corporate social responsibility; Environmental CSR; Differentiated duopoly; Consumer surplus; Social welfare (search for similar items in EconPapers)
JEL-codes: D21 D43 D64 L13 M14 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (94)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:129:y:2015:i:c:p:108-111

DOI: 10.1016/j.econlet.2015.02.027

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