Author: | Noe, T. Rebello, M. |
Title: | Consumer activism, producer groups, and produciton standards |
Journal: | Journal of Economic Behavior and Organization
1995 : JUN, VOL. 27:1, p. 69-86 |
Index terms: | CONSUMERS PRODUCTION STANDARDS |
Language: | eng |
Abstract: | The authors examine competition between groups of producers when consumers prefer costly "ethical" production technologies. Consumers are unable to identify or monitor production technologies. Producers can freeride on their group's "reputation" by substituting cheaper "unethical" technologies. When an ethical technology is Pareto-optimal, social pressures within competing producer groups can ensure long-run dominance of groups relying most heavily on the ethical technology. |
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