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Public discourse and socially responsible market behavior

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Listed:
  • Björn Bartling
  • Vanessa Valero
  • Roberto A. Weber
  • Lan Yao

Abstract

We investigate the causal impact of public discourse on socially responsible market behavior. Across three laboratory experiments, having market participants engage in public discourse generally increases market social responsibility. These positive impacts are robust to variation in several characteristics of the discourse and appear to be partly driven by strengthening beliefs that others support socially responsible exchange. However, relaxing requirements to engage in discourse sharply reduces its effectiveness. Our findings suggest that campaigns encouraging discussion of appropriate market behavior can have powerful impacts on addressing inefficiencies due to market failures, but that policies encouraging broad public engagement may be important.

Suggested Citation

  • Björn Bartling & Vanessa Valero & Roberto A. Weber & Lan Yao, 2020. "Public discourse and socially responsible market behavior," ECON - Working Papers 359, Department of Economics - University of Zurich, revised Jul 2023.
    • Handle: RePEc:zur:econwp:359
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    References listed on IDEAS

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    Cited by:

    1. Riehm, Tobias & Fugger, Nicolas & Gillen, Philippe & Gretschko, Vitali & Werner, Peter, 2022. "Social norms, sanctions, and conditional entry in markets with externalities: Evidence from an artefactual field experiment," Journal of Public Economics, Elsevier, vol. 212(C).
    2. Roland Bénabou & Armin Falk & Luca Henkel & Jean Tirole, 2020. "Eliciting Moral Preferences: Theory and Experiment," Working Papers 2020-17, Princeton University. Economics Department..
    3. Mathias Dewatripont & Jean Tirole, 2022. "The Morality of Markets," Working Papers ECARES 2022-35, ULB -- Universite Libre de Bruxelles.
    4. Fabian Bopp & Wendelin Schnedler, 2023. "Does room for reflection reduce ignorance and increase pro-social behavior? An experimental study," Working Papers Dissertations 109, Paderborn University, Faculty of Business Administration and Economics.

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    More about this item

    Keywords

    Public discourse; market failure; externalities; social responsibility; experiment; communication;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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