Why Firms Should Care for all Consumers

We compare the strategic potential of Corporate Social Responsibility and Customer Orientation as commitments to larger quantities in Cournot competition. In addition to profits, firms can choose to care for the surplus of either all consumers (CSR) or their own customers only (CO), and if so, to what extent. We find that firms prefer to care for all consumers, choosing positive levels of CSR.

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Year of publication:	2015
Authors:	Planer-Friedrich, Lisa ; Sahm, Marco
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	Corporate Social Responsibility \| Customer Orientation \| Cournot duopoly \| commitment

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Series:	CESifo Working Paper ; 5612
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	840883714 [GVK] hdl:10419/123252 [Handle] RePec:ces:ceswps:_5612 [RePEc]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets ; L21 - Business Objectives of the Firm
Source:	EconStor

Persistent link: https://www.econbiz.de/10011388284