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Corporate Social Responsibility and Profit Maximizing Behaviour

Author

Listed:
  • Leonardo Becchetti

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Luisa Giallonardo

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Maria Elisabetta Tessitore

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

Abstract

We examine the behavior of a profit maximizing monopolist in a horizontal differentiation model in which consumers differ in their degree of social responsibility (SR) and consumers SR is dynamically influenced by habit persistence. The model outlines parametric conditions under which (consumer driven) corporate social responsibility is an optimal choice compatible with profit maximizing behavior.

Suggested Citation

  • Leonardo Becchetti & Luisa Giallonardo & Maria Elisabetta Tessitore, 2005. "Corporate Social Responsibility and Profit Maximizing Behaviour," AICCON Working Papers 21-2005, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    • Handle: RePEc:ris:aiccon:2005_021
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    References listed on IDEAS

    as
    1. Anderson, Simon, 1987. "Spatial competition and price leadership," International Journal of Industrial Organization, Elsevier, vol. 5(4), pages 369-398.
    2. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, I: Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 1-26.
    3. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, II: Applications," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 27-41.
    4. Fabrizio Adriani & Leonardo Becchetti, 2004. "Fair Trade: A 'Third Generation' Welfare Mechanism to Make Globalisation Sustainable," CEIS Research Paper 62, Tor Vergata University, CEIS.
    5. Economides, Nicholas, 1984. "The principle of minimum differentiation revisited," European Economic Review, Elsevier, vol. 24(3), pages 345-368, April.
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    Cited by:

    1. P. L. Sacco & M. Viviani, 2006. "La responsabilita' sociale d'Impresa - prospettive teoriche nel dibattito italiano," Working Papers 578, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Pier Luigi Sacco & Michele Viviani, 2005. "Corporate Social Responsibility: theoretical perspectives in the Italian Debate," AICCON Working Papers 11-2005, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    3. repec:dau:papers:123456789/5134 is not listed on IDEAS

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    More about this item

    Keywords

    corporate social responsibility; profit maximizing monopolist;

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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