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Luciano Fanti and Domenico Buccella
''Network externalities and corporate social responsibility''
( 2016, Vol. 36 No.4 )
This paper examines a duopoly market with Corporate Social Responsibility (CSR) firms (sensitive to consumer surplus). It is shown that, in contrast to the conventional result that the higher the weight on CSR the lower the firms' profitability, when network externalities in consumption are present even the firms' profitability may be enhanced by the presence of social concerns. This finding opens a new view of CSR rules by the most worldwide engaged in social activities firms that operate in the more and more increasing sectors of network goods.
Keywords: CSR, network effects, duopoly.
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
M1 - Business Administration: General
Manuscript Received : Mar 22 2016 Manuscript Accepted : Nov 09 2016

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