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How Can Positional Concerns Prevent the Adoption of Socially Desirable Innovations?

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  • Salima Salhi
  • Gilles Grolleau
  • Naoufel Mzoughi
  • Angela Sutan

Abstract

We study the role of positional concerns in explaining the (non-) diffusion of profitable and environmentally friendly innovations in situations where there is no conventional prisoner dilemma. Based on anecdotal evidence from farming activities, we introduce the concept of negative positional goods, that is, goods that destroy status in a given reference group, and show how interactions between status concerns and profitability can lead to unexpected outcomes. Several policy implications are drawn.

Suggested Citation

  • Salima Salhi & Gilles Grolleau & Naoufel Mzoughi & Angela Sutan, 2012. "How Can Positional Concerns Prevent the Adoption of Socially Desirable Innovations?," Journal of Economic Issues, Taylor & Francis Journals, vol. 46(3), pages 799-810.
  • Handle: RePEc:mes:jeciss:v:46:y:2012:i:3:p:799-810
    DOI: 10.2753/JEI0021-3624460311
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    Cited by:

    1. L├Ąpple, Doris & Kelley, Hugh, 2013. "Understanding the uptake of organic farming: Accounting for heterogeneities among Irish farmers," Ecological Economics, Elsevier, vol. 88(C), pages 11-19.
    2. Gilles Grolleau & Deborah Peterson, 2015. "Biodiversity conservation through private initiative: the case of Earth Sanctuaries Ltd," European Journal of Law and Economics, Springer, vol. 40(2), pages 293-312, October.
    3. repec:eee:quaeco:v:68:y:2018:i:c:p:183-189 is not listed on IDEAS

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