This paper studies a capacity choice problem in a duopoly with substitutable goods that is composed of one consumer …-friendly firm and one standard absolute profit-maximizing firm in the contexts of both quantity competition and price competition … absolute profit and consumer surplus. We show that in the quantity competition, for the consumer-friendly firm, under …

We study a duopoly with differentiated and substitutable goods composed of one consumer-friendly firm and one pure …-profit maximizing firm. In such a duopoly, a regulatory authority intervenes to control the degree of altruism of the consumer …-friendly firm. We conclude that under quantity competition, if firms sell goods that are too homogeneous the policymaker should …

competition in quality and price. A demand side strategy research looks towards markets and consumers unlike the traditional …