We address two questions. First, does the excess entry result of pure oligopoly hold when firms face a substitute good produced by a public firm? Second, what would be the optimal ownership of the public firm? We find that excess entry still occurs, but the excessiveness is largely mitigated due...

In this paper we study the conditions under which socially responsible firms can develop a first-mover advantage. We consider a price-setting duopoly market with vertically and horizontally differentiated products, where firms can engage in socially responsible activities and thereby increase...