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A note on ‘Corporate Social Responsibility and Marketing Channel Coordination’


  • Brand, Björn
  • Grothe, Michael


Goering (2012) works on a bilateral monopoly with perfect marketing channel coordination to analyze the effects of corporate social responsibility. He starts the analysis of a bilateral monopoly with socially concerned firms where either the manufacturer or the retailer is additionally to its profit interested in a share of consumer surplus. In this short note, we extend this analysis and study the case where both firms are socially concerned. As a result, we enlarge the analysis started by Goering (2012) and get further interesting insights into a bilateral monopoly with corporate social responsibility. First, we are able to summarize ‘Proposition 1’ and ‘Proposition 4’ into a common one and figure out the circumstances when the wholesale price fixed by the manufacturer is below marginal costs. Second, we explain analytically the findings from ‘Proposition 3’ and ‘Proposition 6’. We point out the model's key assumption – the perfectly coordinated marketing channel – as the driver of the results and the reason for the equilibrium results' independence from retailer's social concern.

Suggested Citation

  • Brand, Björn & Grothe, Michael, 2013. "A note on ‘Corporate Social Responsibility and Marketing Channel Coordination’," Research in Economics, Elsevier, vol. 67(4), pages 324-327.
  • Handle: RePEc:eee:reecon:v:67:y:2013:i:4:p:324-327 DOI: 10.1016/j.rie.2013.09.003

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    References listed on IDEAS

    1. Abel P. Jeuland & Steven M. Shugan, 1983. "Managing Channel Profits," Marketing Science, INFORMS, vol. 2(3), pages 239-272.
    2. Kopel, Michael & Brand, Björn, 2012. "Socially responsible firms and endogenous choice of strategic incentives," Economic Modelling, Elsevier, vol. 29(3), pages 982-989.
    3. Goering, Gregory E., 2012. "Corporate social responsibility and marketing channel coordination," Research in Economics, Elsevier, vol. 66(2), pages 142-148.
    4. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, July.
    5. Gregory E. Goering, 2007. "The strategic use of managerial incentives in a non-profit firm mixed duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 83-91.
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    Cited by:

    1. Bian, Junsong & Li, Kevin W. & Guo, Xiaolei, 2016. "A strategic analysis of incorporating CSR into managerial incentive design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 83-93.
    2. Björn Brand & Michael Grothe, 2015. "Social responsibility in a bilateral monopoly," Journal of Economics, Springer, vol. 115(3), pages 275-289, July.
    3. Kim, Seung-Leul & Lee, Sang-Ho & Matsumura, Toshihiro, 2017. "Corporate social responsibility and privatization policy in a mixed oligopoly," MPRA Paper 79780, University Library of Munich, Germany.
    4. Garcia, Arturo & Leal, Mariel & Lee, Sang-Ho, 2018. "Endogenous timing with a socially responsible firm," MPRA Paper 83968, University Library of Munich, Germany.


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