Corporate social responsibility, consumer sensitivity, and overcapacity

Junlong Chen, Chaoqun Sun and Jiali Liu

Managerial and Decision Economics, 2022, vol. 43, issue 2, 544-554

Abstract: This paper constructs an oligopoly model incorporating corporate social responsibility (β) and consumer sensitivity (e). We analyze the impacts of β and e on overcapacity, profits, consumer surplus, and social welfare under Cournot competition, Stackelberg competition, and Price Leadership competition. The results show that different competition modes produce different degrees of overcapacity. β has complex impacts on profits and affects the comparisons of social welfare. e positively influences equilibrium results. Enterprises have the motivation to voluntarily undertake corporate social responsibility after introducing consumer sensitivity. However, their voluntary commitment level is always lower than that formulated by the government.

Date: 2022
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https://doi.org/10.1002/mde.3401

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:43:y:2022:i:2:p:544-554

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