IDEAS home Printed from https://ideas.repec.org/a/rpo/ripoec/v97y2007i3p51-84.html
   My bibliography  Save this article

Contagious "Social Market Enterprises": The Role of Fair Traders

Author

Listed:
  • Leonardo Becchetti

    ("Tor Vergata" University, Rome)

  • Giuseppina Gianfreda

    (University of Tuscia, Viterbo)

Abstract

One of the effects of the introduction of fair trade goods is that of triggering socially responsible imitation of profit maximising sellers and distributors, thereby creating a consumer driven market mechanism which promotes equity and inclusion. To proof ourclaim we analyze the effects of a fair trader’s entry in a differentiation model where the profit maximizing incumbent mayreact in prices and social responsibility and its position on the segment of social responsibility needs to be advertised at some cost. We outline complementarity and substitution effects among relevant variables and explore incumbent’s incentives to cheat on his ethical stance.

Suggested Citation

  • Leonardo Becchetti & Giuseppina Gianfreda, 2007. "Contagious "Social Market Enterprises": The Role of Fair Traders," Rivista di Politica Economica, SIPI Spa, vol. 97(3), pages 51-84, May-June.
    • Handle: RePEc:rpo:ripoec:v:97:y:2007:i:3:p:51-84
    as

    Download full text from publisher

    File URL: http://www.rivistapoliticaeconomica.it/2007/mag_giu/becchetti-gianfreda.php
    Download Restriction: Payment required
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Becchetti, Leonardo & Palestini, Arsen & Solferino, Nazaria & Elisabetta Tessitore, M., 2014. "The socially responsible choice in a duopolistic market: A dynamic model of “ethical product” differentiation," Economic Modelling, Elsevier, vol. 43(C), pages 114-123.
    2. Solferino, Nazaria & Taurino, SerenaFiona & Tessitore, M.Elisabetta, 2016. "Boosting cooperation between agents in diverse groups: a dynamical model of prosocial behavior, free-riding and coercive solutions," MPRA Paper 71283, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rpo:ripoec:v:97:y:2007:i:3:p:51-84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sabrina Marino (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.