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Consumer activism, producer groups, and production standards

Abstract:

We examine competition between groups of producers when consumers prefer costly `ethical' production technologies. Consumers are unable to identify or monitor production technologies. Producers can freeride on their group's `reputation' by substituting cheaper `unethical' technologies. When an ethical technology is Pareto-optimal, social pressures within competing producer groups can ensure long-run dominance of groups relying most heavily on the ethical technology. Even if social pressures c...

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Publication date:
1995-01-01
URN:
uuid:b2df3c4a-a7c3-45fd-8b5a-af50cede95e7
Local pid:
oai:eureka.sbs.ox.ac.uk:1137

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