Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159482
Authors: 
Balboni, Alberto
Balboni, Fabio
Year of Publication: 
2008
Series/Report no.: 
Quaderni - Working Paper DSE 641
Abstract: 
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.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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