Arbeitspapier
Exit vs. Voice
We study the relative effectiveness of exit (divestment and boycott) and voice (engagement) strategies in promoting socially desirable outcomes in companies that generate externalities. We show that if the majority of investors are socially responsible, voice achieves the socially desirable outcome, while exit does not. If the majority of investors are purely selfish, exit is a more effective strategy, but neither strategy generally achieves the first best. We also show that individual incentives to join an exit strategy are not aligned with social incentives, and hence exit can lead to a worse outcome than if all individuals are purely selfish.
- Language
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Englisch
- Bibliographic citation
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Series: New Working Paper Series ; No. 302
- Classification
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Wirtschaft
Institutions: Design, Formation, Operations, and Impact
Firm Behavior: Theory
Organizational Behavior; Transaction Costs; Property Rights
Externalities
Altruism; Philanthropy; Intergenerational Transfers
Public Goods
Business Objectives of the Firm
- Subject
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Exit
Voice
Social Responsibility
Divestment
Boycott
Engagement
- Event
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Geistige Schöpfung
- (who)
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Broccardo, Eleonora
Hart, Oliver D.
Zingales, Luigi
- Event
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Veröffentlichung
- (who)
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University of Chicago Booth School of Business, Stigler Center for the Study of the Economy and the State
- (where)
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Chicago, IL
- (when)
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2021
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Broccardo, Eleonora
- Hart, Oliver D.
- Zingales, Luigi
- University of Chicago Booth School of Business, Stigler Center for the Study of the Economy and the State
Time of origin
- 2021
Other Objects (12)
State Repression, Exit, and Voice
Exit and voice: yardstick versus fiscal competition across governments
Exit, Voice, and the Role of Corporate Directors: Evidence from Acquisition Performance
Exit, voice and political change: Evidence from Swedish mass migration to the United States
To Leave or Not to Leave? Climate Change, Exit, and Voice on a Pacific Island
Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans
Bringing Hirschman Back In: Conceptualizing Transnational Migration as a Reconfiguration of "Exit", "Voice", and "Loyalty"
Rhineland exit?
Exit strategies
Rhineland exit?
Exit strategies
Rhineland exit?
State Repression, Exit, and Voice
Exit and voice: yardstick versus fiscal competition across governments
Exit, Voice, and the Role of Corporate Directors: Evidence from Acquisition Performance
Exit, voice and political change: Evidence from Swedish mass migration to the United States
To Leave or Not to Leave? Climate Change, Exit, and Voice on a Pacific Island
Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans
Bringing Hirschman Back In: Conceptualizing Transnational Migration as a Reconfiguration of "Exit", "Voice", and "Loyalty"
Rhineland exit?
Exit strategies
Rhineland exit?
Exit strategies
Rhineland exit?
State Repression, Exit, and Voice
Exit and voice: yardstick versus fiscal competition across governments
Exit, Voice, and the Role of Corporate Directors: Evidence from Acquisition Performance
Exit, voice and political change: Evidence from Swedish mass migration to the United States
To Leave or Not to Leave? Climate Change, Exit, and Voice on a Pacific Island
Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans
Bringing Hirschman Back In: Conceptualizing Transnational Migration as a Reconfiguration of "Exit", "Voice", and "Loyalty"
Rhineland exit?
Exit strategies
Rhineland exit?
Exit strategies