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Morally Motivated Self-Regulation

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  • David P. Baron

Abstract

Self-regulation is the private provision of public goods and private redistribution. This paper examines the scope of self-regulation motivated by altruistic moral preferences that are reciprocal and stronger the closer are citizens in a socioeconomic distance. The focus is on the role of organizations in increasing self-regulation by mitigating free-rider problems. Social label and certification organizations can expand the scope of self-regulation but not beyond that with unconditional altruism. Enforcement organizations expand the scope of self-regulation farther, and for-profit enforcement is more aggressive than nonprofit enforcement. Enforcement through social pressure imposed by NGOs also expands the scope of self-regulation. (JEL D64, H41, L51)

Suggested Citation

  • David P. Baron, 2010. "Morally Motivated Self-Regulation," American Economic Review, American Economic Association, vol. 100(4), pages 1299-1329, September.
  • Handle: RePEc:aea:aecrev:v:100:y:2010:i:4:p:1299-1329
    Note: DOI: 10.1257/aer.100.4.1299
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Patricia Crifo & Vanina Forget, 2013. "La responsabilité sociale et environnementale des entreprises : mirage ou virage ?," Working Papers hal-00830642, HAL.
    2. Patricia Crifo & Vanina Forget, 2012. "The Economics of Corporate Social Responsibility: A Survey," Working Papers hal-00720640, HAL.
    3. Will, Matthias Georg, 2011. "Change Management und nicht-monetäre Vergütungen: Wie der organisatorische Wandel das Mitarbeiterverhalten beeinflusst," Discussion Papers 2011-18, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    4. Rotondi, Valentina & Stanca, Luca, 2015. "The effect of particularism on corruption: Theory and empirical evidence," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 219-235.
    5. Naoto Jinji, 2013. "Is Corporate Environmentalism Good for Domestic Welfare?," Review of International Economics, Wiley Blackwell, vol. 21(5), pages 901-911, November.
    6. Blasch, Julia & Farsi, Mehdi, 2012. "Retail demand for voluntary carbon offsets – a choice experiment among Swiss consumers," MPRA Paper 41259, University Library of Munich, Germany.
    7. Patricia Crifo & Vanina D. Forget, 2015. "The Economics Of Corporate Social Responsibility: A Firm-Level Perspective Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 112-130, February.
    8. Heyes, Anthony & Martin, Steve, 2016. "Fuzzy products," International Journal of Industrial Organization, Elsevier, vol. 45(C), pages 1-9.
    9. Agustín Elías Casagrande, 2017. "Between History and Passion: The Legitimacy of Social Clubs in the Province of Buenos Aires (2001–2007)," Politics and Governance, Cogitatio Press, vol. 5(1), pages 34-41.
    10. Ben-Ner, Avner, 2013. "Preferences and organization structure: Toward behavioral economics micro-foundations of organizational analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 87-96.
    11. Yamamura, Eiji, 2012. "Social capital, household income, and preferences for income redistribution," European Journal of Political Economy, Elsevier, vol. 28(4), pages 498-511.
    12. Fabrice Etilé & Sabrina Teyssier, 2013. "Corporate social responsibility and the economics of consumer social responsibility," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 94(2), pages 221-259.
    13. Heyes, Anthony & Martin, Steve, 2015. "NGO mission design," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 197-210.
    14. Julien Daubanes & Jean-Charles Rochet, 2013. "Activists versus Captured Regulators," CESifo Working Paper Series 4444, CESifo Group Munich.
    15. Dylan Minor, 2015. "The Value of Corporate Citizenship: Protection," Harvard Business School Working Papers 16-021, Harvard Business School.
    16. Sylvaine Poret, 2014. "Corporate-NGO partnerships in CSR activities: why and how?," Working Papers 2014-04, Alimentation et Sciences Sociales.
    17. repec:kap:regeco:v:52:y:2017:i:2:d:10.1007_s11149-017-9329-7 is not listed on IDEAS
    18. Reif, Christiane & Rexhäuser, Sascha, 2015. "Good enough! Are socially responsible companies the more successful environmental innovators?," ZEW Discussion Papers 15-018, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    19. Steffen Hoernig & Roman Inderst & Tommaso Valletti, 2014. "Calling circles: network competition with nonuniform calling patterns," RAND Journal of Economics, RAND Corporation, vol. 45(1), pages 155-175, March.
    20. Eiji Yamamura, 2015. "Norm for redistribution, social capital, and perceived tax burden: comparison between highand low-income households," Review of Economics and Institutions, Università di Perugia, vol. 6(2).
    21. Wirl, Franz & Feichtinger, Gustav & Kort, Peter M., 2013. "Individual firm and market dynamics of CSR activities," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 169-182.

    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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