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.

Standort
Deutsche Nationalbibliothek Frankfurt am Main
Umfang
Online-Ressource
Sprache
Englisch

Erschienen in
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)

Urheber

DOI
10.1515/bejte-2022-0136
URN
urn:nbn:de:101:1-2024020209025799578139
Rechteinformation
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Letzte Aktualisierung
15.08.2025, 07:30 MESZ

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