Corporate Social Responsibility, Advertising Competition and Consumer Welfare: A Research on the Model of Oligopoly Competition Theory
- 1 School of Statistics and Data Science, Nanjing Audit University, Nanjing, China
- 2 School of Economics, Nanjing Audit University, Nanjing, China
Abstract
The paper constructs an oligopoly competition model to explore the strategic choice of corporate social responsibility and advertising investment, which means to analyze the trade-off theoretically between advertising investment and the weight of social responsibility. The study found that, with the improvement of social responsibility performance, the dominant strategy of enterprises will evolve from advertising competition to production competition caused by social responsibility. Under certain restrictions, corporate social responsibility will promote advertising competition. Research shows that enterprises should pay attention to the benefits brought by advertising competition while paying attention to social responsibility and the government should also take reasonable control measures, otherwise social welfare and economic benefits of enterprises will be inhibited.
- Chen, J. L., Qin, J. C., & Sun, C. Q. (2021). Oligopolistic Competition Mode, Corporate Social Responsibility and Capacity Choice. Industrial Organization Review, 15, 1-19. (In Chinese)
- Cornell, B., & Shapiro, A. (1987). Corporate Stakeholders and Corporate Finance. Financial Management, 16, 5-14.
- Erickson, G. M. (1985). A Model of Advertising Competition. Journal of Marketing Research, 22, 297-304. https://doi.org/10.1177/002224378502200305
- Fruchter, G. E., & Kalish, S. (1997). Closed-Loop Advertising Strategies in a Duopoly. Management Science, 43, 54-63. https://doi.org/10.1287/mnsc.43.1.54
- Fu, Q., & Liu, Y. (2013). Research on the Impact of Corporate Social Responsibility on Performance Based on Technological Innovation. Science of Science Research, 31, 463-468. (In Chinese) https://doi.org/10.16192/j.cnki.1003-2053.2013.03.018
- Goering, G. E. (2007). The Strategic Use of Managerial Incentives in a Non-Profit Firm Mixed Duopoly. Managerial and Decision Economics, 28, 83-91. https://doi.org/10.1002/mde.1307
- Jones, T. M. (1995). Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics. Academy of Management Review, 20, 404-437. https://doi.org/10.2307/258852
- Kramer, M. R., & Porter, M. E. (2006). Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, 84, 78-92.
- Li, C., Gu, X., & Yang, X. (2022). Will Corporate Technology Innovation Be Affected by Peer Corporate Social Responsibility Stars? Research and Development Management, 34, 118-130. (In Chinese) https://doi.org/10.13581/j.cnki.rdm.20211104
- Li, K. K., & Tang, X. W. (1999). Advertising Competition and Barriers to Market Entry. Journal of University of Electronic Science and Technology of China, 28, 652-654. (In Chinese)
- Li, Y. C. (2022). Executive Compensation Incentive, Corporate Social Responsibility and Corporate Innovation. Market Weekly, 35, 14-18. (In Chinese)
- Liang, Y., & Zuo, X. D. (2005). Study on the Advertisement/Price Decision Analysis of Inside and Entry Enterprises. Journal of Jinan University (Natural Science and Medicine Edition), 26, 612-616. (In Chinese)
- Liu, Q., & Chen, L. (2021). Corporate Social Responsibility and Technological Innovation under R&D Spillover Effect. China Soft Science, No. 7, 120-130. (In Chinese)