An Evolutionary Game for the Issues of Social Investment, Environmental Compliance and Consumer Boycott

André Barreira da Silva Rocha ()

No 13/17, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: I propose an evolutionary game model to study competition among a large number of firms, in which I take into account the issues of social responsibility, government monitoring of environmental compliance and consumer boycott. A large number of firms sell their homogeneous good in an almost perfect competitive market, where consumers have preferences for socially responsible firms. Firms may incur additional costs and carry out social investment and/or environmental investment. Each time interval, a firm may be called to play a competition-stage game, in which it tries to sell its good, or an audit-stage game, in which inspectors audit its degree of environmental compliance.

Keywords: Replicator dynamics; social responsibility; boycott; investment; regulation. (search for similar items in EconPapers)
JEL-codes: C73 L51 M14 (search for similar items in EconPapers)
Date: 2013-07
New Economics Papers: this item is included in nep-bec, nep-com, nep-env, nep-evo and nep-gth
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