英文摘要 |
Taking into consideration of the corporate social responsibility (CSR), this paper discusses the implication of franchising on market equilibrium and social welfare. We found the followings. First, a corporate concerning its CSR would increase its quantity supplied, decreases its competitor’s supply quantity, and increases the overall market supply. This result is held for fixed-fee affiliation agreements. Second, when both of franchisors and franchisees simultaneously adopt the CSR strategy is not a social optimal due to the overproviding. A firm’s best strategy would be concerning its CSR unilaterally. The social welfare would be Pareto improved when one of them unilaterally concern the CSR. |