IDEAS home Printed from https://ideas.repec.org/a/now/jlqjps/100.00011065.html
   My bibliography  Save this article

The Industrial Organization of Private Politics

Author

Listed:
  • Baron, David P.

Abstract

Private politics social pressure is led by social activists who use confrontational and cooperative strategies to induce firms to provide social benefits. A confrontational activist demands that a firm change its practices and threatens a harmful campaign if it does not change. A cooperative activist uses its expertise to identify benefits from a change in practices or provides external legitimacy for a firm. The greater the threat from a confrontational activist the more aggressively the potential targets compete for an engagement with the cooperative activist. If firms would reject the demands of the confrontational activist, the cooperative activist chooses a socially responsible firm over a profit-maximizing firm, and the confrontational activist then campaigns against a profit-maximizing firm. If the threat is sufficiently strong that the firms would accept the demand of the confrontational activist, the cooperative activist is indifferent to which firm it chooses. Consequently, when campaigns are observed, profit-maximizing firms are matched with confrontational activists, and socially responsible firms are matched with cooperative activists. The threat of confrontation creates a positive externality for the cooperative activist, which has an incentive to contribute to the campaign of the confrontational activist.

Suggested Citation

  • Baron, David P., 2012. "The Industrial Organization of Private Politics," Quarterly Journal of Political Science, now publishers, vol. 7(2), pages 135-174, April.
  • Handle: RePEc:now:jlqjps:100.00011065
    DOI: 10.1561/100.00011065
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/100.00011065
    Download Restriction: no

    File URL: https://libkey.io/10.1561/100.00011065?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sylvaine Poret, 2019. "Corporate–NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks," Post-Print hal-02154666, HAL.
    2. Georgy Egorov & Bård Harstad, 2017. "Private Politics and Public Regulation," Review of Economic Studies, Oxford University Press, vol. 84(4), pages 1652-1682.
    3. David P. Baron & Margaret Neale & Hayagreeva Rao, 2016. "Extending Nonmarket Strategy: Political Economy and the Radical Flank Effect in Private Politics," Strategy Science, INFORMS, vol. 1(2), pages 105-126, June.
    4. Nicolas Treich, 2018. "Veganomics : vers une approche économique du véganisme ?," Revue française d'économie, Presses de Sciences-Po, vol. 0(4), pages 3-48.
    5. Krautheim, Sebastian & Verdier, Thierry, 2016. "Offshoring with endogenous NGO activism," Journal of International Economics, Elsevier, vol. 101(C), pages 22-41.
    6. Romain Espinosa & Nicolas Treich, 2021. "Moderate Versus Radical NGOs†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1478-1501, August.
    7. Sylvaine Poret, 2014. "Corporate-NGO partnerships in CSR activities: why and how?," Working Papers 2014-04, Alimentation et Sciences Sociales.
    8. Mireille Chiroleu‐Assouline & Thomas P. Lyon, 2020. "Merchants of doubt: Corporate political action when NGO credibility is uncertain," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(2), pages 439-461, April.
    9. David P. Baron, 2016. "Self‐Regulation and the Market for Activism," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(3), pages 584-607, September.
    10. Tim Kraft & Yanchong Zheng & Feryal Erhun, 2013. "The NGO's Dilemma: How to Influence Firms to Replace a Potentially Hazardous Substance," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 649-669, October.
    11. Espinosa, Romain & Treich, Nicolas, 2020. "Moderate vs. Radical NGOs," TSE Working Papers 20-1159, Toulouse School of Economics (TSE).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:now:jlqjps:100.00011065. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.nowpublishers.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alet Heezemans (email available below). General contact details of provider: http://www.nowpublishers.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.