Firm Competition and Cooperation with Norm‐Based Preferences for Sustainability.
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| Title: | Firm Competition and Cooperation with Norm‐Based Preferences for Sustainability. |
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| Authors: | Inderst, Roman1 (AUTHOR) inderst@finance.uni-frankfurt.de, Sartzetakis, Eftichios S.2 (AUTHOR) esartz@uom.edu.gr, Xepapadeas, Anastasios3,4 (AUTHOR) xepapad@aueb.gr |
| Source: | Journal of Industrial Economics. Dec2023, Vol. 71 Issue 4, p1038-1071. 34p. |
| Subjects: | Consumer preferences, Sustainability, Social norms, Consumption (Economics), Cooperation, Market share, Food preferences |
| Abstract: | We analyze firms' incentives to coordinate on the introduction of a sustainable product variant when consumers' preferences for sustainability depend on the perceived social norm, which in turn is shaped by average consumption behavior. We show that such preferences could lead to multiple equilibria. If the level of competition among potential adopters is very low and adoption of the sustainable variant allows them to sufficiently expand their aggregate market share, they will coordinate on introducing the sustainable variant when a lenient legal regime makes this feasible. If competition among them is intense and market expansion under the sustainable variant is very limited, coordination can forestall the adoption of the sustainable variant. Our analysis thus both confirms and qualifies the notion of a sustainability "first‐mover disadvantage" as a justification for an agreement between competitors, which has gained traction in antitrust. We also provide empirical evidence for norm‐based sustainability preferences. [ABSTRACT FROM AUTHOR] |
| Copyright of Journal of Industrial Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Engineering Source |
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| Header | DbId: egs DbLabel: Engineering Source An: 174108143 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Firm Competition and Cooperation with Norm‐Based Preferences for Sustainability. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Inderst%2C+Roman%22">Inderst, Roman</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> inderst@finance.uni-frankfurt.de</i><br /><searchLink fieldCode="AR" term="%22Sartzetakis%2C+Eftichios+S%2E%22">Sartzetakis, Eftichios S.</searchLink><relatesTo>2</relatesTo> (AUTHOR)<i> esartz@uom.edu.gr</i><br /><searchLink fieldCode="AR" term="%22Xepapadeas%2C+Anastasios%22">Xepapadeas, Anastasios</searchLink><relatesTo>3,4</relatesTo> (AUTHOR)<i> xepapad@aueb.gr</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Journal+of+Industrial+Economics%22">Journal of Industrial Economics</searchLink>. Dec2023, Vol. 71 Issue 4, p1038-1071. 34p. – Name: Subject Label: Subjects Group: Su Data: <searchLink fieldCode="DE" term="%22Consumer+preferences%22">Consumer preferences</searchLink><br /><searchLink fieldCode="DE" term="%22Sustainability%22">Sustainability</searchLink><br /><searchLink fieldCode="DE" term="%22Social+norms%22">Social norms</searchLink><br /><searchLink fieldCode="DE" term="%22Consumption+%28Economics%29%22">Consumption (Economics)</searchLink><br /><searchLink fieldCode="DE" term="%22Cooperation%22">Cooperation</searchLink><br /><searchLink fieldCode="DE" term="%22Market+share%22">Market share</searchLink><br /><searchLink fieldCode="DE" term="%22Food+preferences%22">Food preferences</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: We analyze firms' incentives to coordinate on the introduction of a sustainable product variant when consumers' preferences for sustainability depend on the perceived social norm, which in turn is shaped by average consumption behavior. We show that such preferences could lead to multiple equilibria. If the level of competition among potential adopters is very low and adoption of the sustainable variant allows them to sufficiently expand their aggregate market share, they will coordinate on introducing the sustainable variant when a lenient legal regime makes this feasible. If competition among them is intense and market expansion under the sustainable variant is very limited, coordination can forestall the adoption of the sustainable variant. Our analysis thus both confirms and qualifies the notion of a sustainability "first‐mover disadvantage" as a justification for an agreement between competitors, which has gained traction in antitrust. We also provide empirical evidence for norm‐based sustainability preferences. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Journal of Industrial Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1111/joie.12360 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 34 StartPage: 1038 Subjects: – SubjectFull: Consumer preferences Type: general – SubjectFull: Sustainability Type: general – SubjectFull: Social norms Type: general – SubjectFull: Consumption (Economics) Type: general – SubjectFull: Cooperation Type: general – SubjectFull: Market share Type: general – SubjectFull: Food preferences Type: general Titles: – TitleFull: Firm Competition and Cooperation with Norm‐Based Preferences for Sustainability. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Inderst, Roman – PersonEntity: Name: NameFull: Sartzetakis, Eftichios S. – PersonEntity: Name: NameFull: Xepapadeas, Anastasios IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 12 Text: Dec2023 Type: published Y: 2023 Identifiers: – Type: issn-print Value: 00221821 Numbering: – Type: volume Value: 71 – Type: issue Value: 4 Titles: – TitleFull: Journal of Industrial Economics Type: main |
| ResultId | 1 |
