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Firm Competition and Cooperation with Norm-Based Preferences for Sustainability

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Abstract

We posit that consumers?preferences for more sustainable products depend on the perceived social norm, which in turn is shaped by average consumption behavior. We explore the implications of such preferences for ?rms?incentives to introduce more sustainable products and to co-operate in order to either foster or forestall their introduction. Our main motivation lies in the increasing pressure put on antitrust authorities to exert more leniency towards horizontal agreements that are motivated by sustainability considerations.

Suggested Citation

  • Roman Inderst & Eftichios S. Sartzetakis & Anastasios Xepapadeas, 2022. "Firm Competition and Cooperation with Norm-Based Preferences for Sustainability," Discussion Paper Series 2022_02, Department of Economics, University of Macedonia, revised Feb 2022.
    • Handle: RePEc:mcd:mcddps:2022_02
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    More about this item

    Keywords

    Sustainability; Antitrust; Firm Cooperation.;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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