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Satisfaction and preferences in a legality social dilemma: Does corporate social responsibility impact consumers’ behaviour?

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  • Becchetti, Leonardo
  • Corrado, Germana
  • Pelligra, Vittorio
  • Rossetti, Fiammetta

Abstract

We investigate players’ preferences in a multiplayer prisoner's dilemma by comparing results from satisfaction-based and a choice-based approach by means of a laboratory experiment. The experimental design tests the effects of the legality rating frame on consumers’ choice between products from producers labeled by the legality rating and products by unlabeled producers. Both approaches provide strong evidence of preference heterogeneity, with players who cooperate above median being less affected in their choice by monetary payoffs vis-à-vis the public good component. The empirical findings support the hypothesis of our theoretical model that (part of the) players have, in addition to the standard self-interest component, an other-regarding preference argument that is further satisfied in the legality frame plus conformity design.

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  • Becchetti, Leonardo & Corrado, Germana & Pelligra, Vittorio & Rossetti, Fiammetta, 2020. "Satisfaction and preferences in a legality social dilemma: Does corporate social responsibility impact consumers’ behaviour?," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 483-502.
  • Handle: RePEc:eee:jpolmo:v:42:y:2020:i:2:p:483-502
    DOI: 10.1016/j.jpolmod.2019.07.003
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    References listed on IDEAS

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    Cited by:

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    2. Shiu-Li Huang & Ming-Yen Kuo, 2020. "Critical success factors in the sharing economy: a customer perspective," Service Business, Springer;Pan-Pacific Business Association, vol. 14(4), pages 553-576, December.
    3. Simone Pizzi & Fabio Caputo & Andrea Venturelli, 2020. "Does it pay to be an honest entrepreneur? Addressing the relationship between sustainable development and bankruptcy risk," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1478-1486, May.
    4. Yuan Tian & Chiako Hung & Peter Frumkin, 2020. "An experimental test of the impact of corporate social responsibility on consumers' purchasing behavior: The mediation role of trust," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2972-2982, November.

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    More about this item

    Keywords

    Analysis of collective decision-making; Laboratory experiment; Legality game; Corporate social responsibility;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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