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Environmental conflicts with SLAPP reputations

Author

Listed:
  • Chad Settle

    (University of Tulsa)

  • Jason F. Shogren

    (University of Wyoming)

Abstract

Firms use the strategic lawsuit against public participation (SLAPP) against citizens who complain about poor compliance with environmental rules and regulations. As a consequence, lawmakers have proposed banning SLAPPs in public debate. Theory suggests, however, that a SLAPP ban might be inefficient because it eliminates the efficient signaling equilibrium. This study extends the conflict model to include reputation effects. Our results suggest that a SLAPP ban can increase efficiency but only under a restrictive set of assumptions. One such assumption is that a ban makes sense when firms do not use the SLAPP to build a reputation, which contradicts the spirit of why firms use it in the first place. A SLAPP ban might increase efficiency, however, if it reduces the efficiency losses of chills during the interim periods when a firm builds its reputation.

Suggested Citation

  • Chad Settle & Jason F. Shogren, 2001. "Environmental conflicts with SLAPP reputations," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 4(2), pages 129-139, September.
    • Handle: RePEc:spr:envpol:v:4:y:2001:i:2:d:10.1007_bf03353920
    DOI: 10.1007/BF03353920
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    References listed on IDEAS

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    1. Kyung H. Baik & Jason F. Shogren, 2008. "Strategic Behavior in Contests: Comment," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 439-442, Springer.
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    3. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-898, December.
    4. Baik Kyung Hwan & Shogren Jason F., 1994. "Environmental Conflicts with Reimbursement for Citizen Suits," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 1-20, July.
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    6. Hurley, Terrance M. & Shogren, Jason F., 1997. "Environmental Conflicts and the SLAPP," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 253-273, July.
    7. Hurley, Terrance M. & Shogren, Jason F., 1998. "Asymmetric information contests," European Journal of Political Economy, Elsevier, vol. 14(4), pages 645-665, November.
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