Consumer preference, externalities, and corporate social Responsibility in a Cournot duopoly

This study constructs a duopoly model considering consumer preference for corporate social responsibility (CSR) and negative production externalities, examines the equilibrium results under different CSR decisions, analyzes the impacts of the CSR level, consumer preference, and negative externalities, and further explores the optimal CSR level. The results indicate that the CSR level, consumer preference, and negative externalities influence the equilibrium results. The optimal CSR level increases as consumer preference rises and decreases as negative externalities intensify. CSR contributes to enhancing social welfare, suggesting that governments should guide firms to fulfill CSR.