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Environmental conflicts with SLAPP reputations

Author

Listed:
  • Chad Settle

    (University of Tulsa)

  • Jason F. Shogren

    (University of Wyoming)

Abstract

Firms use the strategic lawsuit against public participation (SLAPP) against citizens who complain about poor compliance with environmental rules and regulations. As a consequence, lawmakers have proposed banning SLAPPs in public debate. Theory suggests, however, that a SLAPP ban might be inefficient because it eliminates the efficient signaling equilibrium. This study extends the conflict model to include reputation effects. Our results suggest that a SLAPP ban can increase efficiency but only under a restrictive set of assumptions. One such assumption is that a ban makes sense when firms do not use the SLAPP to build a reputation, which contradicts the spirit of why firms use it in the first place. A SLAPP ban might increase efficiency, however, if it reduces the efficiency losses of chills during the interim periods when a firm builds its reputation.

Suggested Citation

  • Chad Settle & Jason F. Shogren, 2001. "Environmental conflicts with SLAPP reputations," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 4(2), pages 129-139, September.
    • Handle: RePEc:spr:envpol:v:4:y:2001:i:2:d:10.1007_bf03353920
    DOI: 10.1007/BF03353920
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    References listed on IDEAS

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