Friday, May 13, 2022

Competition and Co-Operation When Consumers' Sustainability Preferences Depend on Social Norms

Competition and Co-Operation When Consumers' Sustainability Preferences Depend on Social Norms

 

 

Roman Inderst

Goethe University Frankfurt

Eftichios Sartzetakis

University of Macedonia

Anastasios Xepapadeas

Athens University of Economics and Business; University of Bologna - School of Economics, Management, and Statistics

 

Abstract

We posit that consumers' preferences for more sustainable products depend on the perceived social norm, which in turn is shaped by average consumption in society. We explore the implications of such preferences for firms' incentives to introduce more sustainable products and to co-operate in order to either foster or forestall their introduction. Our main motivation lies in the increasing pressure put on antitrust authorities to exert more leniency towards horizontal agreements that are motivated by sustainability considerations.

https://lawprofessors.typepad.com/antitrustprof_blog/2022/05/competition-and-co-operation-when-consumers-sustainability-preferences-depend-on-social-norms.html

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