|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/26368
|
| | |
| Title: | | Firms' ethics, consumer boycotts, and signalling  |
| Authors: | | Glazer, Amihai Kanniainen, Vesa Poutvaara, Panu |
| Issue Date: | | 2008 |
| Series/Report no.: | | CESifo working paper 2323 |
| Abstract: | | This paper develops a theory of consumer boycotts. Some consumers care not only about the products they buy but also about whether the firm behaves ethically. Other consumers do not care about the behavior of the firm but yet may like to give the impression of being ethical consumers. Consequently, to affect a firm's ethical behavior, moral consumers refuse to buy from an unethical firm. Consumers who do not care about ethical behavior may join the boycott to (falsely) signal that they do care. In the firms' choice between ethical and unethical behavior, the optimality of mixed and pure strategies depends on the cost of behaving ethically. In particular, when the cost is (relatively) low, ethical behavior arises from a prisoners' dilemma as the firms' optimal strategy. |
| Subjects: | | Firms' ethical code consumer morality boycotts |
| JEL: | | M14 D43 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/26368
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|