Issue 1, 2009

Zenkevich N. A., Zyatchin A. V. An Oligopoly Model with Ecological Limitations in the View of Corporate Social Responsibility.

The object of this article is to determine main directions for regional ecological policy in the view of corporate responsibility. For this purpose we constructed firms’ behavior strategies based on the solution for an instant oligopoly model with ecological limitations. It was solved the problem of ecological design, when a social planner realizes the «polluter pays» principle by imposing such fine level to motivate enterprises to be within maximum concentration limit. A cooperative social stable solution was constructed when total players’ payoff is higher than the one in equilibrium situation and overall pollution level is lower. It was proved that this cooperative solution was time-consistent in dynamic oligopoly model with stochastic dynamics. It means that the cooperative solution corresponds to the sustainable development principle. Key words: Corporate Social Responsibility, Regional Ecological Policy, Sustainable Development, Game, Nash Equilibrium, Cooperative Solution, Stochastic Differential Game, Time-Consistent Cooperative Agreement.

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