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Corporate social responsibility and capacity sharing in a duopoly model

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  • Junlong Chen
  • Xiaomeng Wang
  • Jiali Liu

Abstract

This paper constructs a duopoly model that considers corporate social responsibility (CSR) and capacity sharing, analyzes the equilibrium results and examines the effects of CSR and capacity sharing in three scenarios. CSR has impacts on enterprise output, profits, consumer surplus and social welfare, which are affected by capacity constraints and capacity sharing. The precondition for the realization of capacity sharing is that both enterprises can make profits. At this point, either too high or too low of a capacity sharing price will prevent two enterprises from sharing capacity. Capacity constraints do not necessarily reduce social welfare due to the impacts of CSR.

Suggested Citation

  • Junlong Chen & Xiaomeng Wang & Jiali Liu, 2021. "Corporate social responsibility and capacity sharing in a duopoly model," Applied Economics Letters, Taylor & Francis Journals, vol. 28(6), pages 512-517, March.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:6:p:512-517
    DOI: 10.1080/13504851.2020.1761531
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    Cited by:

    1. Veniamin Mokhov & Sergei Aliukov & Anatoliy Alabugin & Konstantin Osintsev, 2023. "A Review of Mathematical Models of Macroeconomics, Microeconomics, and Government Regulation of the Economy," Mathematics, MDPI, vol. 11(14), pages 1-37, July.
    2. Junlong Chen & Chaoqun Sun & Jiali Liu, 2022. "Corporate social responsibility, consumer sensitivity, and overcapacity," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 544-554, March.
    3. Chen, Junlong & Sun, Chaoqun & Shi, Jiayan & Liu, Jiali, 2022. "Technology R&D and sharing in carbon emission reduction in a duopoly," Technological Forecasting and Social Change, Elsevier, vol. 183(C).

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