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  1. 1 Ekonomia. Wrocław Economic Review

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  1. 1 Buccella D.

  2. 1 Fanti L.

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  1. 1 2017

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When more competition may damage welfare with socially responsible firms

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Fanti L., Buccella D.
Ekonomia. Wrocław Economic Review
|
2017
|
vol. 23
|
issue 3
123 - 134
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.
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