Corporate Social Responsibility, Advertising Competition and Consumer Welfare: A Research on the Model of Oligopoly Competition Theory

Abstract

The paper constructs an oligopoly competition model to explore the strategic choice of corporate social responsibility and advertising investment, which means to analyze the trade-off theoretically between advertising investment and the weight of social responsibility. The study found that, with the improvement of social responsibility performance, the dominant strategy of enterprises will evolve from advertising competition to production competition caused by social responsibility. Under certain restrictions, corporate social responsibility will promote advertising competition. Research shows that enterprises should pay attention to the benefits brought by advertising competition while paying attention to social responsibility and the government should also take reasonable control measures, otherwise social welfare and economic benefits of enterprises will be inhibited.