When more competition may damage welfare with socially responsible firms

  1. Luciano Fanti
  2. Domenico Buccella ORCiD: 0000-0002-9594-0630

Abstract

 

When more competition may damage welfare with socially responsible firms


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.

 

Download article

This article

Ekonomia

23/3, 2017

Pages from 123 to 134

Other articles by author

Google Scholar

zamknij

Your cart (products: 0)

No products in cart

Your cart Checkout