<scp>Market Effects of Changes in Consumers' Social Responsibility</scp>

Garcı́a-Gallego, Aurora; Georgantzı́s, Nikolaos

doi:10.1111/j.1530-9134.2009.00213.x

Cited by 100 publications

(71 citation statements)

References 41 publications

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“…26 Consistently with a large bulk of literature, when improving the environmental quality, the …rm sacri…es the corresponding performance of the good. This trade-o¤ between economic performance and environmental quality is viewed as a key feature of the environmental policy: since both governments at international level and consumers at local level call for cleaner technologies, …rms are faced with the urgency to comply with stricter environmental norms.…”

Section: Some Environmental Policy Implicationssupporting

confidence: 56%

Hedonic Quality and Social Norms: A Hybrid Model of Product Differentiation

2015

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We analyse how strategic competition between a green …rm and a brown competitor develops when their products are di¤erentiated along two dimensions: hedonic quality and environmental quality. The former dimension refers to the pure (intrinsic) performance of the good, whereas the latter dimension has a positional content: buying green goods satis…es the consumers' desire to be socially worthy citizens. Product variants thus comply at di¤erent levels with "green" social norms. Consumer preferences depend on a combination of hedonic quality and compliance with social norms. Assuming that the high hedonic quality variant complies less with these norms than the low hedonic quality variant, we characterize di¤erent equilibrium con…gurations which appear as a result of both the intensity of such norms and the willingness to pay for the hedonic quality. Afterwards, we discuss the policy implications of our analysis. Keywords: Hedonic quality, environmental quality, relative preferences.JEL Classi…cation: D62; L13; H13.This working paper is the revised and updated version of the Working Paper DSE N 950. In this new version, we point out the economic e¤ects of strategic competition when products are di¤erentiated along two dimensions that give rise to a hybrid model of product di¤erentiation. We are grateful to

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Section: Some Environmental Policy Implicationssupporting

confidence: 56%

Hedonic Quality and Social Norms: A Hybrid Model of Product Differentiation

2015

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“…Several scholars have focused their attention on the reasons that lead companies to embrace CSR behaviours (Baron 2001(Baron , 2009García-Gallego and Georgantzís 2009;Benabou and Tirole 2010;Reinhardt and Stavins 2010;Lambertini and Tampieri 2010). Baron (2001) put emphasis on the fact that companies may strategically follow CSR rules because guided by their selfishness.…”

Section: Introductionmentioning

confidence: 99%

Corporate social responsibility, profits and welfare with managerial firms

Fanti

Buccella

2017

Int Rev Econ

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This paper analyses the equilibrium outcomes in a duopoly market where firms follow corporate social responsibility (CSR) behaviours under managerial delegation. It is shown that in the subgame perfect Nash equilibrium of the game, both firms emerge as CSR-type, and the firms' profitability (resp. the welfare of consumers and society) are beneficiated (resp. harmed) by the CSR behaviour. This result is in sharp contrast with the conventional result (established under nonmanagerial firms) that the higher the CSR sensitivity to consumer surplus, the lower (resp. higher) the firms' profitability (resp. the consumer surplus and social welfare).

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“…Nonetheless, the polluting good is subject to a per-unit tax t. Thus, t can be interpreted as the tax di¤erential between the two …rms, while c represents the marginal production cost di¤erential. 6 Pro…t functions are therefore given by:…”

Section: Taxing the Polluting Goodmentioning

confidence: 99%

Hedonic vs Environmental Quality: Which Policy Can Help in Lowering Pollution Emissions?

Mantovani

Vergari

2013

SSRN Journal

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In this paper we compare two policy instruments that can be adopted to curb carbon emissions. The …rst is a conventional pollution tax. The second is an environmental campaign aiming to in ‡uence consumers to switch to a green good. We consider two di¤erent scenarios. When consumers are characterized by hedonic quality preferences, in this case the pollution tax is more e¢ cient than the campaign. On the contrary, when consumers develop environmental quality preferences, there are cases in which the campaign is preferred. To sum up, while both policy instruments are e¤ective in reducing pollution emissions, their e¢ ciency viewed from a welfare perspective crucially depends on consumers'environmental awareness.

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Market Effects of Changes in Consumers' Social Responsibility

Cited by 100 publications

References 41 publications

Hedonic Quality and Social Norms: A Hybrid Model of Product Differentiation

Hedonic Quality and Social Norms: A Hybrid Model of Product Differentiation

Corporate social responsibility, profits and welfare with managerial firms

Hedonic vs Environmental Quality: Which Policy Can Help in Lowering Pollution Emissions?

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