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Sharma, Ajay; Rastogi, Siddhartha

Strategic environmental corporate social responsibility (ECSR) certification and endogenous market structure. (English) Zbl 1533.91371

B. E. J. Theor. Econ. 24, No. 1, 419-433 (2024).
Summary: This paper extends the findings of C.-C. Liu et al. [Econ. Lett. 129, 108–111 (2015; Zbl 1321.91076)], along two dimensions. First, we consider the case of endogenous market structure a la N. Singh and X. Vives [RAND J. Econ. 15, No. 4, 546–554 (1984; doi:10.2307/2555525)]. Second, we refine the ECSR certification standards in differentiated duopoly with analysis of both uniform and discriminating standards. We find that NGO certifier will set the ECSR standards below the optimal level. We show that given the ECSR certification standards, there is a possibility of both price and quantity contracts choices by the firms in endogenous market structure. Additionally, we highlight the market structures emerging due to uniform and discriminating ECSR standards.

MSC:

91B76 Environmental economics (natural resource models, harvesting, pollution, etc.)
91A80 Applications of game theory

Keywords:

corporate social responsibility certification; differentiated duopoly; environmental standards; mixed markets; price competition; quantity competition

Citations:

Zbl 1321.91076
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Full Text: DOI arXiv

References:

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