Arbeitspapier

Do markets erode social responsibility?

This paper studies the stability of socially responsible behavior in markets. We develop a laboratory product market in which low-cost production creates a negative externality for third parties, but where alternative production with higher costs entirely mitigates the externality. Our data reveal a robust and persistent preference for avoiding negative social impact in the market, reflected both in the composition of product types and in a price premium for socially responsible products. Socially responsible behavior in the market is generally robust to varying market characteristics, such as increased seller competition and limited consumer information. Fair behavior in the market is slightly lower than that measured in comparable individual decisions.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 134

Classification
Wirtschaft
Design of Experiments: Laboratory, Group Behavior
Externalities
Subject
Social responsibility
markets
externalities
competition
fairness

Event
Geistige Schöpfung
(who)
Bartling, Björn
Weber, Roberto A.
Event
Veröffentlichung
(who)
University of Zurich, Department of Economics
(where)
Zurich
(when)
2013

DOI
doi:10.5167/uzh-85623
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bartling, Björn
  • Weber, Roberto A.
  • University of Zurich, Department of Economics

Time of origin

  • 2013

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