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Endogenous choice of environmental corporate social responsibility in a mixed duopoly

Author

Listed:
  • Lili Xu
  • Qinghong Zhao
  • Sang‐Ho Lee

Abstract

This paper constructs green managerial delegation contracts in a mixed duopoly wherein either or both public and private firms may adopt environmental corporate social responsibility (ECSR). We demonstrate that the public (private) firm owner positively (negatively) adopts ECSR incentives under Cournot, whereas the incentives are reversed under Bertrand. We also examine an endogenous ECSR choice game and discover that unilateral ECSR adopted by a public firm appears under Cournot, whereas bilateral ECSR where both firms adopt ECSR incentives appears under Bertrand. Our findings show that coordination of competition mode may be harmful to society if both marginal damage and product substitutability are sufficiently high.

Suggested Citation

  • Lili Xu & Qinghong Zhao & Sang‐Ho Lee, 2025. "Endogenous choice of environmental corporate social responsibility in a mixed duopoly," International Journal of Economic Theory, The International Society for Economic Theory, vol. 21(1), pages 26-51, March.
    • Handle: RePEc:bla:ijethy:v:21:y:2025:i:1:p:26-51
    DOI: 10.1111/ijet.12413
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    References listed on IDEAS

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    Cited by:

    1. Mingqing Xing & Sang‐Ho Lee, 2026. "Strategic delegation and risk‐taking in R&D: Partial delegation versus full delegation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 22(2), pages 183-207, June.
    2. Mingqing Xing & Sang‐Ho Lee, 2026. "Strategic environmental corporate social responsibility in a vertically differentiated duopoly," International Journal of Economic Theory, The International Society for Economic Theory, vol. 22(2), pages 214-236, June.
    3. Zhang, Chuyuan & Lee, Sang-Ho, 2026. "Common ownership and green managerial delegation contract in a vertically related market," MPRA Paper 128009, University Library of Munich, Germany.
    4. Xu, Lili & Yin, Yuntong & Lee, Sang-Ho, 2025. "Environmental corporate social responsibility and port privatization in a mixed port supply chain competition," Research in Transportation Economics, Elsevier, vol. 114(C).

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