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Public Discourse and Socially Responsible Market Behavior

Year: 2024

Type: article

Abstract: We investigate the causal impact of public discourse on socially responsible market behavior. Across three laboratory experiments, having market participants engage in public discourse generally increases market social responsibility. These positive impacts are robust to variation in several characteristics of the discourse. We provide evidence that discourse strengthens beliefs that others support socially responsible exchange. However, relaxing requirements to engage in discourse sharply reduces its effectiveness. Our findings suggest that campaigns encouraging discussion of appropriate market behavior can have sizable impacts on addressing inefficiencies due to market failures but that policies encouraging broad public engagement may be important. (JEL C92, D62, D83, D91, P36, M14, Z13)

Source: American Economic Review

DOI: 10.1257/aer.20201361

Authors: Björn Bartling, Vanessa Valero, Roberto A. Weber, Lan Yao

Institutions: University of Zurich, University of Leicester, Shanghai University of Finance and Economics

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

Funders: National Science Foundation, Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung, National Natural Science Foundation of China

Awards: G3257769657, G5458292979, Social Responsibility in Markets