Sustainability game

This paper describes a dynamic multistage game in which sustainability is a value that is shared between companies and stakeholders in a competitive market. The game solution could move from a Nash equilibrium to a higher equilibrium, the MES equilibrium, because of the presence of stakeholders who...

Full description

Saved in:

Bibliographic Details
Published in:	Corporate social-responsibility and environmental management Vol. 28; no. 5; pp. 1540 - 1548
Main Authors:	Pedol, Miriam, Biffi, Elena, Melzi, Simone
Format:	Journal Article
Language:	English
Published:	Chichester, UK John Wiley & Sons, Inc 01-09-2021 Wiley Periodicals Inc
Subjects:	Brand loyalty Customers Equilibrium Feedback Games games theory Green products Positive feedback Risk reduction stakeholders Sustainability sustainability game sustainable strategies
Online Access:	Get full text
Tags:	Add Tag No Tags, Be the first to tag this record!

Description
Summary:	This paper describes a dynamic multistage game in which sustainability is a value that is shared between companies and stakeholders in a competitive market. The game solution could move from a Nash equilibrium to a higher equilibrium, the MES equilibrium, because of the presence of stakeholders who influence the choice and the set of sustainable strategies. Stakeholders provide feedback to companies (by way of awards, ratings, rankings, rebukes, etc.) at every stage of the game. Positive feedback gives a company the chance to expand its business opportunities, leveraging on good reputation, customer loyalty, operational risk mitigation, resilience, employees' cohesion, etc. The interaction between companies and stakeholders also allows companies to seize market opportunities (e.g., supplying sustainable products for responsible customers, sustainable investments for investors, etc.). The sustainability game demonstrates how sustainability can engage the economic system in a market shift.
ISSN:	1535-3958 1535-3966
DOI:	10.1002/csr.2182