Corporate Social Responsibility in Oligopoly
AbstractThis paper studies firms owners' incentives to engage in Corporate Social Responsibility (CSR) activities in an oligopolistic market, in a strategic delegation and vertical product differentiation context. Firms' owners have the opportunity to hire "socially responsible" managers and delegate to them CSR effort and market competition decisions. In equilibrium, both owners employ socially responsible managers. The strategic behavior of owners to hire socially responsible managers increases both output and profits. The societal consequences of Corporate Social Responsibility are also discussed.
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Bibliographic InfoPaper provided by University of Crete, Department of Economics in its series Working Papers with number 0707.
Length: 22 pages
Date of creation: 10 Jun 2006
Date of revision: 15 Jan 2007
Oligopoly; Vertical Product Differentiation; Corporate Social Responsibility; Strategic Managerial D;
Find related papers by JEL classification:
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-28 (All new papers)
- NEP-BEC-2007-01-28 (Business Economics)
- NEP-COM-2007-01-28 (Industrial Competition)
- NEP-MIC-2007-01-28 (Microeconomics)
- NEP-SOC-2007-01-28 (Social Norms & Social Capital)
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