Arbeitspapier

Firm Competition and Cooperation with Norm-Based Preferences for Sustainability

We analyze firms incentives to coordinate on the introduction of a more sustainable product variant when consumers preferences for greater sustainability depend on the perceived social norm, which in turn is shaped by average consumption behavior. Such preferences lead to multiple equilibria. If the more sustainable variant allows firms to sufficiently expand their aggregate market share, when a lenient legal regime makes this feasible they will coordinate on the more sustainable outcome. If their aggregate market share however does not expand sufficiently under the more sustainable variant, coordination can forestall a more sustainable outcome. Our analysis thus both confrms and qualifies the notion of a sustainability first-mover disadvantage as a justification for an agreement between competitors, which has gained traction in antitrust. We also provide empirical evidence for norm-based sustainability preferences.

Sprache
Englisch

Klassifikation
Wirtschaft
Relation of Economics to Social Values
Consumer Economics: Theory
Firm Behavior: Empirical Analysis
Antitrust Law
Production, Pricing, and Market Structure; Size Distribution of Firms
Thema
Sustainability
Antitrust
Firm Cooperation

Ereignis
Geistige Schöpfung
(wer)
Inderst, Roman
Sartzetakis, Eftichios S.
Xepapadeas, Anastasios
Ereignis
Veröffentlichung
(wer)
ZBW - Leibniz Information Centre for Economics
(wo)
Kiel, Hamburg
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Inderst, Roman
  • Sartzetakis, Eftichios S.
  • Xepapadeas, Anastasios
  • ZBW - Leibniz Information Centre for Economics

Entstanden

  • 2022

Ähnliche Objekte (12)