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Strategic Environmental Corporate Social Responsibility (ECSR) Certification and Endogenous Market Structure

  • Ajay Sharma ORCID logo EMAIL logo and Siddhartha Rastogi ORCID logo
Published/Copyright: June 21, 2023
The B.E. Journal of Theoretical Economics
From the journal The B.E. Journal of Theoretical Economics Volume 24 Issue 1

Abstract

This paper extends the findings of Liu, Wang, and Lee (2015. “Strategic Environmental Corporate Social Responsibility in a Differentiated Duopoly Market.” Economics Letters 129: 108–11), along two dimensions. First, we consider the case of endogenous market structure a la Singh and Vives (1984. “Price and Quantity Competition in a Differentiated Duopoly.” The RAND Journal of Economics: 546–54). 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.

Keywords: corporate social responsibility certification; differentiated duopoly; environmental standards; mixed markets; price competition; quantity competition
JEL Classification: D43; L13; L22; M14
Corresponding author: Ajay Sharma, Department of Economics, Indian Institute of Management Indore, Prabandh Shikhar, Rau-Pithampur Road, 453556, Indore, Madhya Pradesh, India; and Global Labor Organization, Essen, Germany, E-mail:

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Supplementary Material

This article contains supplementary material (https://doi.org/10.1515/bejte-2022-0139).

Received: 2022-12-03
Accepted: 2023-05-27
Published Online: 2023-06-21

© 2023 Walter de Gruyter GmbH, Berlin/Boston

Articles in the same Issue

  1. Frontmatter
  2. Research Articles
  3. Screening with Privacy on (Im)persistency
  4. Quality, Shelf Life, and Demand Uncertainty
  5. Transfers and Resilience in Economic Networks
  6. Technology Adoption under Negative External Effects
  7. Management Centrality in Sequential Bargaining: Implications for Strategic Delegation, Welfare, and Stakeholder Conflict
  8. Financial and Operational Creditors in Bankruptcy Resolution: A General Equilibrium Approach Under Three Game-Theoretic Division Rules with an Application to India
  9. Product Differentiation and Trade
  10. A Theoretical Analysis of Collusion Involving Technology Licensing Under Diseconomies of Scale
  11. Product Quality and Product Compatibility in Network Industries
  12. How the Future Shapes Consumption with Time-Inconsistent Preferences
  13. Notes
  14. The Strategic Adoption of Environmental Corporate Social Responsibility with Network Externalities
  15. Strategic Environmental Corporate Social Responsibility (ECSR) Certification and Endogenous Market Structure
  16. A Note on a Moment Inequality
https://doi.org/10.1515/bejte-2022-0139
Keywords for this article
corporate social responsibility certification; differentiated duopoly; environmental standards; mixed markets; price competition; quantity competition

Articles in the same Issue

  1. Frontmatter
  2. Research Articles
  3. Screening with Privacy on (Im)persistency
  4. Quality, Shelf Life, and Demand Uncertainty
  5. Transfers and Resilience in Economic Networks
  6. Technology Adoption under Negative External Effects
  7. Management Centrality in Sequential Bargaining: Implications for Strategic Delegation, Welfare, and Stakeholder Conflict
  8. Financial and Operational Creditors in Bankruptcy Resolution: A General Equilibrium Approach Under Three Game-Theoretic Division Rules with an Application to India
  9. Product Differentiation and Trade
  10. A Theoretical Analysis of Collusion Involving Technology Licensing Under Diseconomies of Scale
  11. Product Quality and Product Compatibility in Network Industries
  12. How the Future Shapes Consumption with Time-Inconsistent Preferences
  13. Notes
  14. The Strategic Adoption of Environmental Corporate Social Responsibility with Network Externalities
  15. Strategic Environmental Corporate Social Responsibility (ECSR) Certification and Endogenous Market Structure
  16. A Note on a Moment Inequality
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