Délégation et RSE dans un duopole différencié

This paper examines the strategic use of Corporate Social Responsibility (CSR) in an oligopolistic industry composed of two firms producing differentiated goods. The owners of each firm have the option to hire a manager and offer them incentive contracts including CSR criteria. It is shown that, in equilibrium, both firms hire a socially responsible manager. Furthermore, the use of this type of incentive contract contributes to imrove consumer surplus and social welfare.