Strategic environmental corporate social responsibility (ECSR) certification and endogenous market structure

DOI10.1515/BEJTE-2022-0139arXiv2301.03291MaRDI QIDQ6131144FDOQ6131144

Authors:

Publication date: 4 April 2024

Published in: The B.E. Journal of Theoretical Economics (Search for Journal in Brave)

Abstract: This paper extends the findings of Liu et al. (2015, Strategic environmental corporate social responsibility in a differentiated duopoly market, Economics Letters), along two dimensions. First, we consider the case of endogenous market structure a la Vives and Singh (1984, Price and quantity competition in a differentiated duopoly, The Rand Journal of Economics). Second, we refine the ECSR certification standards in differentiated duopoly with rankings. We find that optimal ECSR certification standards by NGO are the highest in Bertrand competition, followed by mixed markets and the lowest in Cournot competition. Next, NGO certifier will set the ECSR standards below the optimal level. Also, we show that given the ECSR certification standards, there is a possibility of both price and quantity contracts choices by the firms in endogenous market structure.

Full work available at URL: https://arxiv.org/abs/2301.03291

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zbMATH Keywords

price competitionquantity competitionmixed marketsdifferentiated duopolyenvironmental standardscorporate social responsibility certification

Mathematics Subject Classification ID

Applications of game theory (91A80) Environmental economics (natural resource models, harvesting, pollution, etc.) (91B76)

Cites Work

• Corporate social responsibility and privatization policy in a mixed oligopoly
• Strategic environmental corporate social responsibility in a differentiated duopoly market
• Private versus public companies with strategic CSR

Cited In (2)

• Environmental corporate social responsibility under price competition and the second‐mover advantage: An endogenous timing approach
• The strategic adoption of environmental corporate social responsibility with network externalities

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