Why Firms Should Care for all Consumers

Lisa Planer-Friedrich and Marco Sahm

No 5612, CESifo Working Paper Series from CESifo

Abstract: We compare the strategic potential of Corporate Social Responsibility and Customer Orientation as commitments to larger quantities in Cournot competition. In addition to profits, firms can choose to care for the surplus of either all consumers (CSR) or their own customers only (CO), and if so, to what extent. We find that firms prefer to care for all consumers, choosing positive levels of CSR.

Keywords: Corporate Social Responsibility; Customer Orientation; Cournot duopoly; commitment (search for similar items in EconPapers)
JEL-codes: D43 L13 L21 (search for similar items in EconPapers)
Date: 2015
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