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On the Stability of Mixed Oligopoly Equilibria with CSR Firms

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  • L. Lambertini
  • A. Tampieri

Abstract

This paper examines the stability conditions of the equilibria in a market where profit-maximising and CSR firms coexist in the presence of an environmental externality. An equilibrium in mixed duopoly is stable for low impact of productivity on pollution and high CSR sensitivity to consumer surplus. In addition, a mixed oligopoly equilibrium is stable if the number of CSR is sufficiently low.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp768.

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Date of creation: Jul 2011
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Handle: RePEc:bol:bodewp:wp768

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  1. Bénabou, Roland & Tirole, Jean, 2009. "Individual and Corporate Social Responsibility," TSE Working Papers 09-109, Toulouse School of Economics (TSE).
  2. 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, 03.
  3. L. Lambertini & A. Tampieri, 2010. "Corporate Social Responsibility in a Mixed Oligopoly," Working Papers wp723, Dipartimento Scienze Economiche, Universita' di Bologna.
  4. d'ASPREMONT, Claude & JACQUEMIN, Alexis & GABSZEWICZ, Jean J. & WEYMARK, John A., . "On the stability of collusive price leadership," CORE Discussion Papers RP -522, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Matthew J. Kotchen, 2003. "Green Markets and Private Provision of Public Goods," Department of Economics Working Papers 2003-05, Department of Economics, Williams College.
  6. 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, 03.
  7. 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.
  8. 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, 03.
  9. 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, 03.
  10. Donsimoni, Marie-Paule & Economides, Nicholas S & Polemarchakis, Herakles M, 1986. "Stable Cartels," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 317-27, June.
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Cited by:
  1. L. Lambertini & A. Tampieri, 2011. "Corporate Social Responsibility and Firms Ability to Collude," Working Papers wp778, Dipartimento Scienze Economiche, Universita' di Bologna.

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