Duopoly competition in food industry considering corporate social responsibility
Main Article Content
Keywords
corporate social responsibility (CSR), food quality, food safety, game theory, non-cooperative
Abstract
This paper describes the effects of corporate social responsibility (CSR) on food industry and some interesting conclusions are achieved. Firstly, CSR improves both the quality and the quantity of the food for the CSR firm, while it reduces those for the maximising profit (MP) firm. Secondly, both the total quality and the quantity in the industry are promoted by CSR. Thirdly, CSR reduces the MP firm’s profits, while there is an inverse U-shaped relationship between CSR and the CSR firm’s profits. Finally, CSR improves the consumer surplus and the social welfare.
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