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Why firms should care for customers

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  • Königstein, Manfred
  • Müller, Wieland

Abstract

Adopting the indirect evolutionary approach, we show that it might be beneficial for firms on a heterogeneous market not only to care for their profits but also for their respective customers' welfare.

Suggested Citation

  • Königstein, Manfred & Müller, Wieland, 2000. "Why firms should care for customers," SFB 373 Discussion Papers 2000,102, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    • Handle: RePEc:zbw:sfb373:2000102
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    References listed on IDEAS

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    1. Huck, Steffen & Oechssler, Jorg, 1999. "The Indirect Evolutionary Approach to Explaining Fair Allocations," Games and Economic Behavior, Elsevier, vol. 28(1), pages 13-24, July.
    2. Bester, Helmut & Guth, Werner, 1998. "Is altruism evolutionarily stable?," Journal of Economic Behavior & Organization, Elsevier, vol. 34(2), pages 193-209, February.
    3. Manfred Konigstein & Wieland Muller, 2000. "Combining Rational Choice and Evolutionary Dynamics: The Indirect Evolutionary Approach," Metroeconomica, Wiley Blackwell, vol. 51(3), pages 235-256, August.
    4. Guth, Werner & Huck, Steffen, 1997. "A new justification of monopolistic competition," Economics Letters, Elsevier, vol. 57(2), pages 177-182, December.
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    Cited by:

    1. Xu Lili & Lee Sang-Ho, 2022. "Corporate Profit Tax and Strategic Corporate Social Responsibility Under Foreign Acquisition," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 22(1), pages 123-151, January.
    2. M. Ali Choudhary, 2004. "Connecting People," School of Economics Discussion Papers 0404, School of Economics, University of Surrey.
    3. Lisa Planer-Friedrich & Marco Sahm, 2018. "Why Firms Should Care for All Consumers," Economics Bulletin, AccessEcon, vol. 38(3), pages 1603-1612.
    4. Kopel, Michael & Lamantia, Fabio & Szidarovszky, Ferenc, 2014. "Evolutionary competition in a mixed market with socially concerned firms," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 394-409.
    5. Lisa Planer-Friedrich & Marco Sahm, 2015. "Why Firms Should Care for all Consumers," CESifo Working Paper Series 5612, CESifo.
    6. Ohnishi, Kazuhiro, 2023. "Why firms should care for consumers: Complementary goods," MPRA Paper 117305, University Library of Munich, Germany.
    7. Daniele Crotti & Elena Maggi, 2023. "Social Responsibility and Urban Consolidation Centres in Sustainable Freight Transport Markets," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 829-850, July.
    8. Flores, Daniel & García, Arturo, 2016. "On the output and welfare effects of a non-profit firm in a mixed duopoly: A generalization," Economic Systems, Elsevier, vol. 40(4), pages 631-637.

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    More about this item

    Keywords

    evolutionary stability; customer orientation; heterogenous market; duopoly;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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