What the study found
The study found that firms in a vertically differentiated duopoly, a market with two firms selling different quality levels, may choose different environmental corporate social responsibility (ECSR) levels depending on their quality-cost differences. It also found that both firms can earn higher profits with ECSR than with no ECSR.
Why the authors say this matters
The authors conclude that ECSR can be an endogenous choice for both firms, regardless of quality-cost differences. They also suggest that cooperative ECSR leads to a higher strategic ECSR level than non-cooperative ECSR.
What the researchers tested
The researchers studied strategic incentives for firms to adopt ECSR in a vertically differentiated duopoly. They examined how quality-cost differences affect ECSR choices for low-quality and high-quality firms, and they compared non-cooperative ECSR with cooperative ECSR.
What worked and what didn't
The abstract reports that the low-quality firm chooses a higher or lower ECSR level than the high-quality firm depending on whether it has a relatively greater or smaller quality-cost advantage. It also reports that both firms achieve higher profits with ECSR than with no ECSR, and that cooperative ECSR produces a higher strategic level than non-cooperative ECSR.
What to keep in mind
The available summary does not describe limitations, data sources, or empirical tests. The findings are stated for a vertically differentiated duopoly, so the scope appears limited to that market setting.
Key points
- The study examines strategic environmental corporate social responsibility (ECSR) in a vertically differentiated duopoly.
- The low-quality firm’s ECSR level depends on its quality-cost advantage relative to the high-quality firm.
- Both firms are reported to earn higher profits with ECSR than with no ECSR.
- The authors conclude that both firms endogenously choose ECSR regardless of quality-cost differences.
- Cooperative ECSR leads to a higher strategic level than non-cooperative ECSR.
Disclosure
- Research title:
- ECSR choices vary with firm quality-cost differences
- Authors:
- Mingqing Xing, Sang‐Ho Lee
- Institutions:
- Chonnam National University, Weifang University
- Publication date:
- 2026-03-06
- OpenAlex record:
- View
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