We extend the traditional horizontal differentiation models to the analysis of firm location into the space of corporate social responsibility (CSR) in presence of consumers with heterogeneous tastes and willingness to pay for it. We find that nonzero corporate social responsibility, even when modelled as a pure cost, may be an optimal choice for profit maximising producers is conditional to CSR costs, consumers’ sensitiveness for CSR and uncertainty about consumer tastes.
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.