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The impact of market innovations on the dissemination of social norms: the sustainability case

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  • Stephan Müller

    (Göttingen University)

  • Georg Wangenheim

    (Kassel University)

Abstract

The paper presents a model that links the diffusion process of a technological innovation and the dissemination of a social norm. Our approach introduces a new dimension to the interaction between markets and social norms beyond the interplay of monetary and non-monetary incentives: the innovation of material goods as a catalyst of norm evolution. We analyze how the dissemination of a social norm may be affected by product innovation, which adds to the variation of products with respect to their level of norm compliance. The market is linked to the process of norm adoption via psychological forces, endogenizing the rates of adoption and abandonment. We derive necessary and sufficient conditions for a) a positive impact of the innovation on the level of norm adoption and b) for multiplicity of norm equilibria. In concluding, we discuss several policy implications.

Suggested Citation

  • Stephan Müller & Georg Wangenheim, 2017. "The impact of market innovations on the dissemination of social norms: the sustainability case," Journal of Evolutionary Economics, Springer, vol. 27(4), pages 663-690, September.
    • Handle: RePEc:spr:joevec:v:27:y:2017:i:4:d:10.1007_s00191-017-0509-5
    DOI: 10.1007/s00191-017-0509-5
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