When more competition may damage welfare with socially responsible firms

• Authors: Luciano Fanti , Domenico Buccella
• Languages of publication: EN

Abstracts

EN

Considering a Cournot monopoly/duopoly model with linear/quadratic production costs and Cor­porate Social Responsibility (CSR) activities, this note shows that, in contrast to the common view, entry may reduce social welfare. Moreover, we remark that the higherthe CSR activities are, the more likely the welfare-damaging entry effect may occur, and thesocial welfare changes following a firm’s entry crucially depend on the degree of convexity of the cost function.

Keywords

EN

CSR; Monopoly; Duopoly

Welfare

• Publisher: Wydawnictwo Uniwersytetu Wroclawskiego
• Journal: Ekonomia. Wrocław Economic Review
• Year: 2017
• Volume: 23
• Issue: 3
• Pages: 123 - 134

Contributors

author

Luciano Fanti

• University of Pisa

author

Domenico Buccella

• Kozminski University, Warsaw