Corporate social responsibility and capacity sharing in a duopoly model

Junlong Chen, Xiaomeng Wang and Jiali Liu

Applied Economics Letters, 2021, vol. 28, issue 6, 512-517

Abstract: This paper constructs a duopoly model that considers corporate social responsibility (CSR) and capacity sharing, analyzes the equilibrium results and examines the effects of CSR and capacity sharing in three scenarios. CSR has impacts on enterprise output, profits, consumer surplus and social welfare, which are affected by capacity constraints and capacity sharing. The precondition for the realization of capacity sharing is that both enterprises can make profits. At this point, either too high or too low of a capacity sharing price will prevent two enterprises from sharing capacity. Capacity constraints do not necessarily reduce social welfare due to the impacts of CSR.

Date: 2021
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DOI: 10.1080/13504851.2020.1761531

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