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Endogenous Choice of Competition Modes in a Differentiated Duopoly with Corporate Social Responsibility
School of Management, Jiangsu University, Zhenjiang, China
Department of Marketing and Logistics Management, Yu Da University of Science and Technology, Miaoli, China
Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung, China
Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung, China
Yunnan Minzu University, Kunming, China
- 1 School of Management, Jiangsu University, Zhenjiang, China
- 2 Department of Marketing and Logistics Management, Yu Da University of Science and Technology, Miaoli, China
- 3 Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung, China
- 4 Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung, China
- 5 Yunnan Minzu University, Kunming, China
Theoretical Economics Letters·Volume 15 (2025)·Pages 619–629·Published 30 April 2025·DOI10.4236/tel.2025.153033
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Abstract
This paper examines how the corporate social responsibility (CSR) affects endogenous choice of competition modes. The behavior of the relevant firms and the decision policy are explored. We find that in the case of product substitution, the introduction of CSR policies by firms focusing on consumer rights will reverse the traditional quantitative competition results as the dominate strategy. Price competition becomes the dominate strategy and welfare will increase as the degree of product substitution decreases or the weight of consumer rights increases.
KeywordsCorporate Social Responsibility (CSR)Price CompetitionQuantity Competition
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