Premium
The optimal level of corporate social responsibility based on the duopoly model
Author(s) -
Chen Junlong,
Sun Chaoqun,
Liu Jiali,
Huo Yan
Publication year - 2021
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3222
Subject(s) - corporate social responsibility , duopoly , competitor analysis , economic surplus , microeconomics , marginal cost , cournot competition , business , social welfare , welfare , industrial organization , economics , marketing , market economy , public relations , political science , law
This paper constructs a duopoly model considering corporate social responsibility (CSR) and market's sensitivity to CSR ( e ) and analyzes the equilibrium results, the condition of CSR implementation and the optimal CSR level ( β * ) of Model CC (two enterprises implement CSR) and Model CN (only one enterprise implements CSR). The results show that β * is affected by competitors and e. e , marginal cost ( c ) and cost difference affect the equilibrium results and the comparative results. Reducing c and improving e can promote social welfare. Consumer surplus under Model CC is highest. CSR has a negative effect on social welfare under certain conditions.