Arbeitspapier

A Duopoly Model of Corporate Social Responsibility and Location Choice

We adopt a framework of vertical differentiation to study the issue of Corporate Social Responsibility (CSR). We develop a model of duopoly in a two-country setting, in which firms choose the country of location, the level of CSR and finally compete in the market à la Bertrand. We show that: i) at equilibrium the two firms choose different levels of CSR, i.e. an "ethical" and a "neutral" firm coexist in the market; ii) regardless of its location choice, the "neutral" firm undertakes a level of CSR equal to the minimum international standard; iii) the location choice of both the "ethical" and the "neutral" firm depends on the relative costs of CSR in the two countries; in addition the choice of the "ethical" firm is influenced by the distribution of consumers' tastes for CSR, while the choice of the "neutral" firm is affected by the level of the minimum international standard for CSR.

Sprache
Englisch

Erschienen in
Series: Quaderni - Working Paper DSE ; No. 641

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Balboni, Alberto
Balboni, Fabio
Ereignis
Veröffentlichung
(wer)
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
(wo)
Bologna
(wann)
2008

DOI
doi:10.6092/unibo/amsacta/4606
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Balboni, Alberto
  • Balboni, Fabio
  • Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

Entstanden

  • 2008

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