Title
Individual firm and market dynamics of CSR activitiesIndividual firm and market dynamics of CSR activities
Author
Faculty/Department
Faculty of Applied Economics
Research group
Economics
Publication type
article
Publication
Amsterdam,
Subject
Economics
Source (journal)
Journal of economic behavior and organization. - Amsterdam
Volume/pages
86(2013), p. 169-182
ISSN
0167-2681
ISI
000315425300013
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
This paper investigates how firms should plan corporate social responsibility (short CSR). This dynamic analysis starts with a firm's intertemporal optimization problem, and proceeds to analyze interactions with other firms, which are crucial: if CSR is profitable for firm A then it is most likely also profitable for competitors B and C, and these simultaneous decisions affect the gain each would achieve from trying to advance its own position. We find that multiple equilibria exist, irrespective of whether interactions with other firms are taken into account. Interactions can eliminate or create additional steady states and can lead to a situation in which history is insufficient to determine the long run outcome among multiple steady states, so that coordination is beneficial. (C) 2012 Elsevier B.V. All rights reserved.
E-info
https://repository.uantwerpen.be/docman/iruaauth/d6704b/4033772.pdf
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