The Strategic Adoption of Environmental Corporate Social Responsibility with Network Externalities
Abstract: This paper adopts a green managerial delegation model in a polluting network industry wherein consumers form fulfilled rational expectations of network externalities. We show that firms are consistently incentivized to undertake ECSR (environmental corporate social responsibility) under price competition, while positive network externalities can increase the strategic level of ECSR. We also show that product substitutability between network products can play an important role in determining a firm’s strategic level of ECSR and resulting profits. Finally, ECSR is conducive to increasing environmental quality and social welfare in a high-polluting network industry. Therefore, the strategic adoption of ECSR in a network industry is Pareto-improving as environmental damage becomes serious.
- Location
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Deutsche Nationalbibliothek Frankfurt am Main
- Extent
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Online-Ressource
- Language
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Englisch
- Bibliographic citation
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The Strategic Adoption of Environmental Corporate Social Responsibility with Network Externalities ; volume:24 ; number:1 ; year:2023 ; pages:399-418 ; extent:20
The B.E. journal of theoretical economics ; 24, Heft 1 (2023), 399-418 (gesamt 20)
- Creator
- DOI
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10.1515/bejte-2022-0136
- URN
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urn:nbn:de:101:1-2024020209025799578139
- Rights
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Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Last update
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15.08.2025, 7:30 AM CEST
Data provider
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