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.
- Sprache
-
Englisch
- Erschienen in
-
Series: New Working Paper Series ; No. 302
- Klassifikation
-
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
- Thema
-
Exit
Voice
Social Responsibility
Divestment
Boycott
Engagement
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Broccardo, Eleonora
Hart, Oliver D.
Zingales, Luigi
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Chicago Booth School of Business, Stigler Center for the Study of the Economy and the State
- (wo)
-
Chicago, IL
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 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.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- 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
Entstanden
- 2021
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