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Strategic environmental corporate social responsibility in a differentiated duopoly market


  • Liu, Chih-Chen
  • Wang, Leonard F.S.
  • Lee, Sang-Ho


This paper investigates the impacts of competition structures on firms’ incentives for adopting strategic environmental corporate social responsibility (ECSR) certified by a Non-Governmental Organization. We show that, to induce firms to adopt certified ECSR, the certifier will set a standard lower than the optimal one, and the standard in Cournot competition is higher than that in Bertrand competition. Finally, we show that firms and consumers benefit from firms’ certified ECSR.

Suggested Citation

  • Liu, Chih-Chen & Wang, Leonard F.S. & Lee, Sang-Ho, 2015. "Strategic environmental corporate social responsibility in a differentiated duopoly market," Economics Letters, Elsevier, vol. 129(C), pages 108-111.
  • Handle: RePEc:eee:ecolet:v:129:y:2015:i:c:p:108-111
    DOI: 10.1016/j.econlet.2015.02.027

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    References listed on IDEAS

    1. Constantine Manasakis & Evangelos Mitrokostas & Emmanuel Petrakis, 2013. "Certification of corporate social responsibility activities in oligopolistic markets," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 282-309, February.
    2. 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.
    3. 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.
    4. Markus Kitzmueller & Jay Shimshack, 2012. "Economic Perspectives on Corporate Social Responsibility," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 51-84, March.
    5. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    6. Constantine Manasakis & Evangelos Mitrokostas & Emmanuel Petrakis, 2014. "Strategic Corporate Social Responsibility Activities and Corporate Governance in Imperfectly Competitive Markets," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(7), pages 460-473, October.
    7. 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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    More about this item


    Corporate social responsibility; Environmental CSR; Differentiated duopoly; Consumer surplus; Social welfare;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility


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