Firms' corporate social irresponsibility behaviors during interplay with consumers in evolutionary game models

This paper uses an evolutionary game model to study the interaction between firms' corporate social irresponsibility (CSI) behaviors and consumers' perception of corporate social responsibility (CSR). The model explores the trade-off between firms prioritizing economic performance over social responsibility and the maximization of social welfare when firms are socially responsible and consumers have strong CSR perceptions. Two evolutionary stable strategy scenarios are identified based on industrial environments. A healthy market depends on increased consumer bargaining power and initial conditions, exhibiting path dependence. While consumers' added willingness to pay for CSR doesn't affect evolutionary outcomes, it increases the likelihood of a healthy market with high consumer bargaining power. The findings highlight the dynamic nature of firms' CSI behaviors influenced by transaction costs, industrial structure, and consumer willingness to pay.

Xiaoyang Zhao, Jie Mi