The optimal level of corporate social responsibility based on the duopoly model

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.