Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/204377 
Year of Publication: 
2014
Series/Report no.: 
IFRO Working Paper No. 2014/09
Publisher: 
University of Copenhagen, Department of Food and Resource Economics (IFRO), Copenhagen
Abstract: 
In this paper, we propose a reputation-signalling model of demand for consumer goods containing pro-social characteristics such as a 'fair trade' or 'organic' certification. We show that reputation signalling can reverse price reactions resembling the crowding-out of pre-existing motives for pro-social behavior seen in situations of volunteering and charitable giving. Finally, using a unique combination of questionnaire and purchase panel data, we present evidence of such reputation-driven reversal of price reactions in the Danish market for organic milk.
Subjects: 
net-crowding out
reversed price reactions
pro-social reputation
reputation signalling
consumer goods
JEL: 
D03
D11
D12
D64
D82
D51
Document Type: 
Working Paper

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