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On the scope of externalities in experimental markets


Bartling, Björn; Valero, Vanessa; Weber, Roberto A (2017). On the scope of externalities in experimental markets. Experimental Economics:Epub ahead of print.

Abstract

We study how the scope of negative externalities from market activity affects the willingness of market actors to exhibit social responsibility. Using the laboratory experimental paradigm introduced by Bartling et al. (Q J Econ 130(1):219–266, 2015), we compare the voluntary internalization of negative social impacts by market actors in cases where the negative externality is diffused among many subjects or is concentrated on a single subject. We (1) replicate earlier results demonstrating substantial degrees of market social responsibility and (2) find that the willingness of market actors to act pro-socially is only slightly affected by whether the impacts are concentrated or diffused.

Abstract

We study how the scope of negative externalities from market activity affects the willingness of market actors to exhibit social responsibility. Using the laboratory experimental paradigm introduced by Bartling et al. (Q J Econ 130(1):219–266, 2015), we compare the voluntary internalization of negative social impacts by market actors in cases where the negative externality is diffused among many subjects or is concentrated on a single subject. We (1) replicate earlier results demonstrating substantial degrees of market social responsibility and (2) find that the willingness of market actors to act pro-socially is only slightly affected by whether the impacts are concentrated or diffused.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Negative externalities, scope of externalities, social responsibility, market experiments
Language:English
Date:November 2017
Deposited On:22 Dec 2017 11:46
Last Modified:28 Feb 2018 06:18
Publisher:Springer
ISSN:1386-4157
OA Status:Closed
Publisher DOI:https://doi.org/10.1007/s10683-017-9549-9

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Embargo till: 2018-11-01