This paper studies the interaction between a firm and its consumers under the consideration of corporate social responsibility (CSR). The firm can choose to be either socially responsible or irresponsible; however, the consumers cannot observe the firm's exact CSR type. The firm can signal its...

The bottom up pressure of "concerned" consumers and the rise of "socially responsible" products represents a new market mechanism to fight inequality and promote social inclusion. To analyse the new phenomenon of competition in corporate social responsibility (CSR) amid doubts on consumer tastes...