The efficiency wage model of Shapiro and Stiglitz (American Economic Review 74: 433-444, 1984) has not always been confirmed by empirical investigations. This could be due to informational problems. Reformulating the Shapiro and Stiglitz model as a sequential game, this paper examines the...

Do firms need to sacrifice profit while innovating in order to further social objectives, as corporate social responsibility (CSR) would seem to suggest? To answer this question, the paper compiles a classification of innovations according to market impact and CSR potential. Then it details case...

Starting from the premise that firms are distinct in terms of their capacity to create radical product innovations, the present paper attempts to explore how firms choose between different forms of R&D cooperation and their consequences for social welfare. It studies a duopolistic market, where...

The present paper examines how an innovating firm decides between two forms of voluntary agreements (VA) in a context, where a non-governmental organization (NGO) rather than a regulator watches over citizens' interests. The innovation generates profit and consumer surplus as well as...