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The political economy of the vote with the wallet

Author

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  • Becchetti, Leonardo

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Salustri, Francesco

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

Abstract

The willingness to pay of private consumers for socially and environmentally re- sponsible companies retailing public goods is an emerging though under-researched contemporary economic feature. We model the problem faced by responsible con- sumers as a typical multiplayer prisoner’s dilemma and analyse four redistribution mechanisms that can be implemented by regulators and institutions to enforce the cooperative equilibrium. The desirable property of three of these schemes is that of extending the parametric interval of cooperative equilibrium without additional government expenditure. We also discuss the implication of our results for already implemented policies such as feed-in tariffs (FITs).

Suggested Citation

  • Becchetti, Leonardo & Salustri, Francesco, 2016. "The political economy of the vote with the wallet," AICCON Working Papers 146-2016, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    • Handle: RePEc:ris:aiccon:2016_146
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    Cited by:

    1. Leonardo Becchetti & Massimo Cermelli, 2018. "Civil economy: definition and strategies for sustainable well-living," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(3), pages 329-357, September.

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    More about this item

    Keywords

    Redistributionmechanism; Corporatesocialresponsibility; Multiplayer prisoner’s dilemma;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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