Becchetti, Leonardo; Giallonardo, Luisa; Tessitore, … - In: Rivista di Politica Economica 97 (2007) 5, pp. 55-82
In our model of ethical product differentiation two duopolists, a profit maximizing producer (PMP) and a "socially responsible" (SR) producer, compete over prices and "socially and environmentally responsible" features of their products. We show that the PMP finds it optimal to reduce his price...