Abstract
ABSTRACT In this study, considering a vertical market, we analyze the endogenous timing of two downstream firms providing differentiated goods in response to an upstream firm’s commitment to Corporate Social Responsibility (CSR). We demonstrate that sequential play is realized under quantity competition when the degree of upstream CSR is high and the goods are less substitutable. This is because the upstream firm offers a lower input price under a more competitive environment. Using similar logic, we also illustrate that simultaneous play may be realized under price competition. Additionally, we extend the model in several directions.
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