Arbeitspapier

Why firms should care for all consumers

We compare the strategic potential of Corporate Social Responsibility (CSR) and Customer Orientation (CO) as commitments to larger quantities in Cournot competition, modeled as a multi-stage game. First, in addition to profits, firms can choose to care for the surplus of either all consumers (CSR) or their own customers only (CO). Second, they decide upon the weight of this additional objective. We find that firms prefer to care for all consumers, choosing positive levels of CSR. This result provides an explanation for the recent shift from CO to CSR in both, corporate culture and economic research.

ISBN
978-3-943153-35-4
Language
Englisch

Bibliographic citation
Series: BERG Working Paper Series ; No. 116

Classification
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Business Objectives of the Firm
Subject
Corporate Social Responsibility
Customer Orientation
Cournot Duopoly
Commitment

Event
Geistige Schöpfung
(who)
Planer-Friedrich, Lisa
Sahm, Marco
Event
Veröffentlichung
(who)
Bamberg University, Bamberg Economic Research Group (BERG)
(where)
Bamberg
(when)
2016

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Planer-Friedrich, Lisa
  • Sahm, Marco
  • Bamberg University, Bamberg Economic Research Group (BERG)

Time of origin

  • 2016

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