Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146897
Authors: 
Planer-Friedrich, Lisa
Sahm, Marco
Year of Publication: 
2016
Series/Report no.: 
BERG Working Paper Series 116
Abstract: 
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.
Subjects: 
Corporate Social Responsibility
Customer Orientation
Cournot Duopoly
Commitment
JEL: 
D43
L13
L21
ISBN: 
978-3-943153-35-4
Document Type: 
Working Paper

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