{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,12,18]],"date-time":"2025-12-18T09:26:34Z","timestamp":1766049994284,"version":"build-2065373602"},"reference-count":26,"publisher":"MDPI AG","issue":"3","license":[{"start":{"date-parts":[[2022,5,12]],"date-time":"2022-05-12T00:00:00Z","timestamp":1652313600000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Games"],"abstract":"<jats:p>We construct a dynamic bilateral monopoly game to analyze the bargaining between a foreign manufacturer and a domestic retailer regarding the wholesale price and explain the foreign upstream firm\u2019s corporate social responsibility (CSR) initiative and its economic impacts on the domestic market. Under free trade, the foreign upstream firm\u2019s CSR initiative realizes improvements in consumer surplus and social welfare in the home country. A \u201cwin\u2013win\u2013win\u201d strategy exists, as the foreign manufacturer has more of an incentive to implement CSR when the government implements a strategic trade policy. The consumer-friendly action implemented by the foreign upstream firm leads to adequate consumer welfare and social welfare, which mitigates the government\u2019s political hostility. With the high bargaining power of the foreign upstream firm and the low weight of the consumer-friendly upstream firm, the government should set a higher tariff rate for the foreign upstream firm to extract rent and enhance social welfare.<\/jats:p>","DOI":"10.3390\/g13030038","type":"journal-article","created":{"date-parts":[[2022,5,12]],"date-time":"2022-05-12T03:28:43Z","timestamp":1652326123000},"page":"38","update-policy":"https:\/\/doi.org\/10.3390\/mdpi_crossmark_policy","source":"Crossref","is-referenced-by-count":1,"title":["Quid Pro Quo CSR and Trade Liberalization in a Bilateral Monopoly"],"prefix":"10.3390","volume":"13","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-8122-4342","authenticated-orcid":false,"given":"Shih-Shen","family":"Chen","sequence":"first","affiliation":[{"name":"School of Economics and Management, Fuzhou University of International Studies and Trade, Fuzhou 350202, China"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-5767-4079","authenticated-orcid":false,"given":"Chien-Shu","family":"Tsai","sequence":"additional","affiliation":[{"name":"Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan"}]},{"given":"Chen","family":"Chen","sequence":"additional","affiliation":[{"name":"School of Economics and Management, Fuzhou University of International Studies and Trade, Fuzhou 350202, China"}]}],"member":"1968","published-online":{"date-parts":[[2022,5,12]]},"reference":[{"key":"ref_1","doi-asserted-by":"crossref","first-page":"257","DOI":"10.1007\/s10842-015-0206-8","article-title":"R&D Policy Involving Consumer-friendly Strategy: Cooperative and Non-Cooperative R&D","volume":"16","author":"Wang","year":"2016","journal-title":"J. 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