Market Effects of Changes in Consumers' Social Responsibility
Abstract"In a duopoly model of vertical differentiation, we study market equilibrium and the resulting social welfare following an increase in the consumer's willingness to pay (WTP) for products sold by socially responsible manufacturers. Different types of such changes emerge depending on their effects on consumer heterogeneity. We show that, in most cases, increases in the consumers' social consciousness yield higher profits to socially responsible firms and may lead to higher levels of social welfare, provided that the market structure is left unchanged. However, when an increase in the consumer's social consciousness changes the market structure, welfare may fall, while the duopolists' profits rise. The resulting tension between private and social interest calls for a cautious attitude toward information campaigns aimed at increasing the consumer's social consciousness." Copyright (c) 2009, The Author(s) Journal Compilation (c) 2009 Wiley Periodicals, Inc..
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.
Volume (Year): 18 (2009)
Issue (Month): 1 (03)
Contact details of provider:
Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Duvaleix-Treguer, Sabine & Hammoudi, Hakim & Rouached, Lamia & Soler, Louis-Georges, 2010.
"Firms’ Responses To Nutritional Policies,"
115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany
116399, European Association of Agricultural Economists & Agricultural and Applied Economics Association.
- L. Lambertini & A. Tampieri, 2011. "Corporate Social Responsibility and Firms Ability to Collude," Working Papers wp778, Dipartimento Scienze Economiche, Universita' di Bologna.
- Maria José Gil-Moltó & Dimitrios Varvarigos, 2011.
"Emission Taxes and the Adoption of Cleaner Technologies: The Case of Environmentally Conscious Consumers,"
Discussion Papers in Economics
11/49, Department of Economics, University of Leicester.
- Gil-Moltó, Maria José & Varvarigos, Dimitrios, 2013. "Emission taxes and the adoption of cleaner technologies: The case of environmentally conscious consumers," Resource and Energy Economics, Elsevier, vol. 35(4), pages 486-504.
- Klaas van 't Veld & Matthew J. Kotchen, 2010. "Green Clubs," NBER Working Papers 16627, National Bureau of Economic Research, Inc.
- Nicola Doni & Giorgio Ricchiuti, 2011.
"Market Equilibrium in the Presence of Green Consumers and Responsible Firms: a Comparative Statics Analysis,"
Working Papers - Economics
wp2011_07.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
- Doni, Nicola & Ricchiuti, Giorgio, 2013. "Market equilibrium in the presence of green consumers and responsible firms: A comparative statics analysis," Resource and Energy Economics, Elsevier, vol. 35(3), pages 380-395.
- Nicola Doni & Giorgio Ricchiuti, 2011. "Market Equilibrium in the Presence of Green Consumers and Responsible Firms: A Comparative Statics Analysis," Working Papers 2011.33, Fondazione Eni Enrico Mattei.
- Jesse Matheson, 2011. "Prices and social behavior: A study of adult smoking in Canadian Aboriginal communities," Discussion Papers in Economics 11/50, Department of Economics, University of Leicester, revised Dec 2012.
- Andreea-Daniela, GANGONE & Mihaela, ASANDEI, 2013. "The Map Of Sustainable European Retail," Management Strategies Journal, Constantin Brancoveanu University, vol. 23(Special), pages 427-435.
- A. Mantovani & C. Vergari, 2013. "Hedonic vs Environmental Quality: Which Policy Can Help in Lowering Pollution Emissions?," Working Papers wp906, Dipartimento Scienze Economiche, Universita' di Bologna.
- Evangelos Mitrokostas & Emmanuel Petrakis, 2008. "Private CSR Activities in Oligopolistic Markets: Is there any room for Regulation?," Working Papers 0816, University of Crete, Department of Economics.
- Kaufman, Noah, 2014. "Overcoming the barriers to the market performance of green consumer goods," Resource and Energy Economics, Elsevier, vol. 36(2), pages 487-507.
- L. Lambertini & A. Tampieri, 2011. "On the Stability of Mixed Oligopoly Equilibria with CSR Firms," Working Papers wp768, Dipartimento Scienze Economiche, Universita' di Bologna.
- L. Lambertini & A. Tampieri, 2012. "On the Emergence of Overcompliance with Endogenous Environmental Standards and Patronising Consumers," Working Papers wp847, Dipartimento Scienze Economiche, Universita' di Bologna.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.