No abstract

This paper examines the spillover and competition effects of corporate social responsibility (CSR) with duopoly competition. In employing the assumption that firm CSR increases consumer willingness to pay for the firm's products while consumer willingness to pay decreases for non‐CSR firm products, some interesting conclusions are achieved. First, CSR spillover effects increase CSR firm outputs and prices, while CSR spillover has the opposite effect on competitors. Second, CSR spillover decreases total outputs and total social welfare levels. Third, competition effects increase CSR expenditures, and CSR firms' CSR policies are the most robust when non‐CSR firms assume a leading position. It is found that total outputs and consumer utilities are highest when CSR firm acts as leader, while the relationships of social welfare among different cases are ambiguous depending on product substitution and spillover effects.

No abstract

This paper subjects to examine how technology spillover affects input competition and how input constraints impact firm innovation by a two-stage game model and theoretic analysis. The results show that with low spillover, the high cost firm can capture more input than the low cost firm through cost-reducing innovation. Adding input increases firms’ innovation, but it cannot improve the disadvantaged firm's state under input constraint. Compared with non-cooperative innovation, cooperative innovation reduces innovation difference and firm size difference. The research implications are that disadvantage firms could take innovation spillover and capacity constraints as a competition strategy to obtain competition advantage and regulators should stimulate cooperative innovation to higher social welfare. The major value of this paper is that it combines capacity constraints and innovation investment originality.

No abstract