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CSR and Quantity Leadership in Restaurant Competition

Author

Listed:
  • Fernanda A. Ferreira

    (UNIAG, CiTUR, ESHT, Polytechnic of Porto)

  • Daniela Meneses

    (UNIAG, ESHT, Polytechnic of Porto)

  • Sandro Carvalho

    (ESHT, Polytechnic of Porto)

  • Rita Peres

    (CiTUR, Centre for Tourism Research, Development, and Innovation, Estoril Higher Institute for Tourism & Hotel Studies)

Abstract

This paper investigates the critical role of Corporate Social Responsibility (CSR) in the food industry. It analyzes CSR’s impact on competition between a CSR-focused restaurant and a traditional for-profit (FP) restaurant. The research employs a game theory model to examine how each restaurant chooses the quality and quantity of its products, influenced by its differing objectives (CSR vs. profit maximization). The study’s main contributions include analyzing scenarios where a CSR restaurant competes with a traditional for-profit establishment, considering two leadership structures (CSR restaurant leading or FP restaurant leading the market), and determining equilibrium quality levels, quantities, profits, and overall social welfare in each model. This paper investigates the effects of CSR within the food industry. We develop a model where a restaurant with a CSR focus competes with a traditional for-profit (FP) establishment in determining the quality and quantity of their offerings, in the order mentioned. Yet, while the levels of quality are chosen at the same time, the quantities are determined one after the other. Our analysis considers two leadership structures: (i) the CSR restaurant leading the market; and (ii) the FP restaurant leading the market.

Suggested Citation

  • Fernanda A. Ferreira & Daniela Meneses & Sandro Carvalho & Rita Peres, 2026. "CSR and Quantity Leadership in Restaurant Competition," Springer Proceedings in Business and Economics,, Springer.
    • Handle: RePEc:spr:prbchp:978-3-032-11639-0_8
    DOI: 10.1007/978-3-032-11639-0_8
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