Leonardo Becchetti () (Università di Roma "Tor Vergata") Luisa Giallonardo () (Università di Roma "Tor Vergata") Maria Elisabetta Tessitore () (Università di Roma "Tor Vergata")
Additional information is available for the following
registered author(s):
In our model of ethical product differentiation two duopolists, a profit maximizing producer (PMP) and a "socially responsible" (SR) producer, compete over prices and "socially and environmentally responsible" features of their products. We show that the PMP finds it optimal to reduce his price after the SR producer’s entry when his location is fixed.We also outline equilibria in a sequential game in which the SR producer is a Stackelberg leader. We show that, when consumers’ perceived costs of ethical distance are high enough, equilibria have three main features: minimum price differentiation, ethical imitation and non minimal ethical differentiation.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Volume (Year): 97 (2007) Issue (Month): 5 (September-October) Pages: 55-82 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:rpo:ripoec:v:97:y:2007:i:5:p:55-82
Contact details of provider:
For technical questions regarding this item, or to correct its listing, contact: (Sabrina Marino).
Related research
Keywords:
Find related papers by JEL classification: L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs