Fanelli, Domenico (2010): The Role of Socially Concerned Consumers in the Coexistence of Ethical and Standard Firms.
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The purpose of this paper is to investigate how socially concerned consumers' preferences affects firms' decisions to commit to social responsibility. In a market in which firms face the same demand function and products are homogeneous, we find that a large group of socially concerned consumers or a low cost of social responsibility induces an equilibrium outcome in which ethical and standard firms coexists in the same market. Our result is relevant because we do not assume a product differentiation setup and firms do not separate the market through labeling schemes.
|Item Type:||MPRA Paper|
|Original Title:||The Role of Socially Concerned Consumers in the Coexistence of Ethical and Standard Firms|
|Keywords:||CSR; Price Competition; Duopoly, ESS, Replicator Dynamics|
|Subjects:||M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M14 - Corporate Culture; Social Responsibility
D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C73 - Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
|Depositing User:||Domenico Fanelli|
|Date Deposited:||18. Jan 2010 16:51|
|Last Modified:||19. Feb 2013 12:54|
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