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Games 2017, 8(3), 39; https://doi.org/10.3390/g8030039

On Adverse Effects of Consumers’ Attaching Greater Importance to Firms’ Ethical Conduct

1
Center for Advanced Studies in Law and Economics (CASTLE), University of Bonn, 53113 Bonn, Germany
2
Public Economics Group, University of Marburg, 35037 Marburg, Germany
3
Center for Economic Studies (CESifo), 81679 Munich, Germany
4
EconomiX-CNRS. Université Paris-Ouest Nanterre La Défense. 200, Avenue de la République, 92001 Nanterre CEDEX, France
*
Author to whom correspondence should be addressed.
Received: 28 July 2017 / Revised: 31 August 2017 / Accepted: 6 September 2017 / Published: 14 September 2017
(This article belongs to the Special Issue Ethics, Morality, and Game Theory)
Full-Text   |   PDF [202 KB, uploaded 14 September 2017]

Abstract

Consumers increasingly care about firms’ ethical conduct (e.g., labor and environmental practices) when making their consumption choices. This note presents a simple framework to highlight the possibility that this development may induce a less desirable production technology choice and bring about lower market transparency. When faced with consumers’ greater moral concerns, more firms may choose an undesirable mode of production and shroud information about it. View Full-Text
Keywords: consumer choice; technology choice; moral conduct; external harm consumer choice; technology choice; moral conduct; external harm
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Baumann, F.; Friehe, T. On Adverse Effects of Consumers’ Attaching Greater Importance to Firms’ Ethical Conduct. Games 2017, 8, 39.

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