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Consumer Social Responsibility

Author

Listed:
  • Rockenbach, Bettina
  • Pigors, Mark

Abstract

We investigate the emergence of socially responsible (SR) production through consumer decisions. Our experimental treatments vary market competitiveness and consumers information on social responsibility in production. We show that irrespective of consumers information SR production reduces monopolistic supplier s profit and is therefore unlikely to emerge. With supplier competition, SR production positively influences consumers buying decisions and suppliers offering SR products achieve significantly higher profits, as long their price is not too high. Our results yield valuable insights into the possibilities and limitations of promoting SR production through consumer behavior, and provide evidence for positive effects of competition on moral behavior.

Suggested Citation

  • Rockenbach, Bettina & Pigors, Mark, 2015. "Consumer Social Responsibility," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113139, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:113139
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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