How does corporate altruism affect oligopolistic competition?

Candel Sánchez, Francisco; Perote Peña, Juan

Publication:
How does corporate altruism affect oligopolistic competition?

dc.contributor.author	Candel Sánchez, Francisco
dc.contributor.author	Perote Peña, Juan
dc.contributor.department	Fundamentos del Análisis Económico
dc.date.accessioned	2025-01-26T11:34:53Z
dc.date.available	2025-01-26T11:34:53Z
dc.date.issued	2024-06
dc.description	© 2024 The Authors. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ This document is the Published Manuscript version of a Published Work that appeared in final form in Economic Modelling. To access the final edited and published work see https://doi.org/10.1016/j.econmod.2024.106701
dc.description.abstract	This paper examines firms' corporate social responsibility (CSR) competition in a duopoly model with product differentiation. Firms exhibit different degrees of altruism, which is a characteristic positively valued by consumers; however, as each firm's degree of altruism (type) is private information, using CSR activities to signal the types becomes an additional tool for competition. We analyze a game where firms first signal about their types and then compete in standard price competition. Consumers observe the firms' CSR activities and infer their degree of altruism. Firms then simultaneously set prices, and consumers purchase goods from one firm or the other. In equilibrium, CSR is determined by the consumers' valuation of corporate altruism and the degree of product differentiation. The model examines the interaction between these two determinants, finding that more competition in the market (less product differentiation) might be detrimental to CSR when consumers' concern about firms' altruism is high enough.	es
dc.format	application/pdf	es
dc.format.extent	10	es
dc.identifier.citation	Economic Modelling, 2024, Vol. 135 : 106701
dc.identifier.doi	https://doi.org/10.1016/j.econmod.2024.106701
dc.identifier.issn	Print: 0264-9993
dc.identifier.issn	Electronic: 1873-6122
dc.identifier.uri	http://hdl.handle.net/10201/149319
dc.language	eng	es
dc.publisher	Elsevier	es
dc.relation	The authors acknowledge financial support from the Spanish Ministry of Economy and Competitiveness under MEC/FEDER Grant ECO2016-75631-P.	es
dc.rights	info:eu-repo/semantics/openAccess	es
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 Internacional	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/	*
dc.subject	Corporate social responsibility	es
dc.subject	Signaling
dc.subject	Altruism
dc.subject	Oligopoly
dc.subject.other	CDU::3 - Ciencias sociales::33 - Economía	es
dc.title	How does corporate altruism affect oligopolistic competition?	es
dc.type	info:eu-repo/semantics/article	es
dspace.entity.type	Publication	es