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Public discourse and socially responsible market behavior

Author

Listed:
  • Björn Bartling
  • Vanessa Valero
  • Roberto A. Weber
  • Lan Yao

Abstract

We investigate the causal impact of public discourse on socially responsible market behavior. We conduct laboratory market experiments with products that differ in their production costs and social impact, and provide market actors and impacted third parties with the opportunity to discuss appropriate market behavior. Across two studies that vary characteristics of the discourse, the external impact and the participants, we find that public discourse substantially increases market social responsibility. Our findings suggest that discussions and campaigns focusing on appropriate market behavior can be powerful tools for shaping responsible norms governing market conduct and addressing inefficiencies due to market failures.

Suggested Citation

  • Björn Bartling & Vanessa Valero & Roberto A. Weber & Lan Yao, 2020. "Public discourse and socially responsible market behavior," ECON - Working Papers 359, Department of Economics - University of Zurich.
  • Handle: RePEc:zur:econwp:359
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public discourse; market failure; externalities; social responsibility; social norms; experiment; communication;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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