We extend the traditional horizontal differentiation models to the analysis of firm location into the space of corporate social responsibility (CSR) in presence of consumers with heterogeneous tastes and willingness to pay for it. We find that nonzero corporate social responsibility, even when modelled as a pure cost, may be an optimal choice for profit maximising producers is conditional to CSR costs, consumers’ sensitiveness for CSR and uncertainty about consumer tastes.

Becchetti, L., Tessitore, M.e., Giallonardo, L. (2006). Corporate social responsibility and profit maximising behaviour under consumer tastes uncertainty.

Corporate social responsibility and profit maximising behaviour under consumer tastes uncertainty

BECCHETTI, LEONARDO;TESSITORE, MARIA ELISABETTA;
2006-07-01

Abstract

We extend the traditional horizontal differentiation models to the analysis of firm location into the space of corporate social responsibility (CSR) in presence of consumers with heterogeneous tastes and willingness to pay for it. We find that nonzero corporate social responsibility, even when modelled as a pure cost, may be an optimal choice for profit maximising producers is conditional to CSR costs, consumers’ sensitiveness for CSR and uncertainty about consumer tastes.
Settore SECS-P/06 - Economia Applicata
it
corporate social responsibility
horizontal product differentiation
consumer tastes uncertainty
Becchetti, L., Tessitore, M.e., Giallonardo, L. (2006). Corporate social responsibility and profit maximising behaviour under consumer tastes uncertainty.
Becchetti, L; Tessitore, Me; Giallonardo, L
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/287
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