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Corporate Social Responsibility and Firms’ Ability to Collude

In: Board Directors and Corporate Social Responsibility

Author

Listed:
  • Luca Lambertini

    (University of Bologna Strada Maggiore 45
    University of Amsterdam Roetersstraat 11)

  • Alessandro Tampieri

    (University of Bologna Strada Maggiore 45)

Abstract

A growing interest for Corporate Social Responsibility (CSR) is recently characterising the economic literature.1 One strand identifies CSR with the creation of public goods or curtailment of public bads (Bagnoli and Watts, 2003; Kotchen, 2006; Besley and Ghatak, 2010), generally showing that there is a close parallel between CSR so defined and the results obtained by the models of private provision of public goods. Other contributions study the desirability of CSR (Baron, 2001), the role of CSR in selecting motivated agents (Brekke and Nyborg, 2008) or the bearings exerted by either social pressure or the presence of ‘green’ consumers on market competition (Arora and Gangopdhyay, 1995; Garcia-Gallego and Georgantzís, 2009; and Baron, 2009). Finally, Lundgren (2007), Lambertini and Tampieri (2010) and Manasakis et al. (2011) investigate the possibility that the presence of a CSR firm in an oligopoly translates into an indirect regulatory instrument, and Lambertini and Tampieri (2011a) examine the equilibrium mix of CSR and profit-seeking firms in a Cournot industry.

Suggested Citation

  • Luca Lambertini & Alessandro Tampieri, 2012. "Corporate Social Responsibility and Firms’ Ability to Collude," Palgrave Macmillan Books, in: Sabri Boubaker & Duc Khuong Nguyen (ed.), Board Directors and Corporate Social Responsibility, chapter 9, pages 167-178, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-38930-4_9
    DOI: 10.1057/9780230389304_9
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    References listed on IDEAS

    as
    1. Giulio Ecchia & Luca Lambertini, 1997. "Minimum Quality Standards and Collusion," Journal of Industrial Economics, Wiley Blackwell, vol. 45(1), pages 101-113, March.
    2. Lambertini, Luca & Tampieri, Alessandro, 2015. "Incentives, performance and desirability of socially responsible firms in a Cournot oligopoly," Economic Modelling, Elsevier, vol. 50(C), pages 40-48.
    3. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(1), pages 1-12.
    4. Roland Bénabou & Jean Tirole, 2010. "Individual and Corporate Social Responsibility," Economica, London School of Economics and Political Science, vol. 77(305), pages 1-19, January.
    5. Aurora García‐Gallego & Nikolaos Georgantzís, 2009. "Market Effects of Changes in Consumers' Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 235-262, March.
    6. Constantine Manasakis & Evangelos Mitrokostas & Emmanuel Petrakis, 2007. "Corporate Social Responsibility in Oligopoly," Working Papers 0707, University of Crete, Department of Economics.
    7. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 7-45, March.
    8. Damania, D., 1996. "Pollution Taxes and Pollution Abatement in an Oligopoly Supergame," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 323-336, May.
    9. J.P. Gond & A. El Akremi & J. Igalens & V. Swaen, 2011. "A corporate social responsibility," Post-Print hal-00826426, HAL.
    10. Matthew J. Kotchen, 2006. "Green Markets and Private Provision of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 816-845, August.
    11. Brekke, Kjell Arne & Nyborg, Karine, 2008. "Attracting responsible employees: Green production as labor market screening," Resource and Energy Economics, Elsevier, vol. 30(4), pages 509-526, December.
    12. repec:bla:jindec:v:45:y:1997:i:1:p:101-13 is not listed on IDEAS
    13. Lundgren, Tommy, 2007. "On the Economics of Corporate Responsibility," Sustainable Investment and Corporate Governance Working Papers 2007/3, Sustainable Investment Research Platform.
    14. Mark Bagnoli & Susan G. Watts, 2003. "Selling to Socially Responsible Consumers: Competition and The Private Provision of Public Goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 419-445, September.
    15. Aaron K. Chatterji & David I. Levine & Michael W. Toffel, 2009. "How Well Do Social Ratings Actually Measure Corporate Social Responsibility?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 125-169, March.
    16. Benchekroun, Hassan & Van Long, Ngo, 2002. "On the multiplicity of efficiency-inducing tax rules," Economics Letters, Elsevier, vol. 76(3), pages 331-336, August.
    17. David P. Baron & Daniel Diermeier, 2007. "Introduction to the Special Issue on Nonmarket Strategy and Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 539-545, September.
    18. Benchekroun, Hassan & van Long, Ngo, 1998. "Efficiency inducing taxation for polluting oligopolists," Journal of Public Economics, Elsevier, vol. 70(2), pages 325-342, November.
    19. David P. Baron, 2009. "A Positive Theory of Moral Management, Social Pressure, and Corporate Social Performance," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 7-43, March.
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    Cited by:

    1. Lambertini, Luca & Tampieri, Alessandro, 2015. "Incentives, performance and desirability of socially responsible firms in a Cournot oligopoly," Economic Modelling, Elsevier, vol. 50(C), pages 40-48.
    2. Juan Pineiro-Chousa & Marcos Vizcaíno-González & M. Ángeles López-Cabarcos, 2016. "Reputation, Game Theory and Entrepreneurial Sustainability," Sustainability, MDPI, vol. 8(11), pages 1-13, November.
    3. L. Lambertini & A. Palestini & A. Tampieri, 2014. "CSR in an Asymmetric Duopoly with Environmental Externalities," Working Papers wp959, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Kadohognon sylvain Ouattara, 2017. "Strategic privatization in a mixed duopoly with a socially responsible firm," Economics Bulletin, AccessEcon, vol. 37(3), pages 2067-2075.
    5. Lisa Planer-Friedrich & Marco Sahm, 2017. "Strategic Corporate Social Responsibility," CESifo Working Paper Series 6506, CESifo.
    6. Luciano Fanti & Domenico Buccella, 2018. "Profitability of corporate social responsibility in network industries," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(3), pages 271-289, September.
    7. Planer-Friedrich, Lisa & Sahm, Marco, 2017. "Strategic corporate social responsibility," BERG Working Paper Series 124, Bamberg University, Bamberg Economic Research Group.
    8. Planer-Friedrich, Lisa & Sahm, Marco, 2017. "Why Firms Should Care for All Consumers," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168257, Verein für Socialpolitik / German Economic Association.
    9. Pineiro-Chousa, Juan & Vizcaíno-González, Marcos, 2016. "A quantum derivation of a reputational risk premium," International Review of Financial Analysis, Elsevier, vol. 47(C), pages 304-309.

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    More about this item

    Keywords

    Corporate Social Responsibility; Discount Factor; Consumer Surplus; Private Provision; Optimal Punishment;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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