• 1. Introduction
  • 2. Assumptions
  • 2.1. Firms
  • 2.2 Ethical preferences of consumers
  • 3 Equilibrium with di¤ering pure strategies
  • 4 Firms’ ethical decisions
  • 4.1 Equilibrium with mixed strategies
  • 4.2 When both firms choose the same pure strategy
  • 5 When does the equilibrium have mixed strategies?
  • 6 Ethical behavior as a prisoners’ dilemma: lowprofit equilibrium.
  • 7 Final remarks
  • References