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On the scope of externalities in experimental markets

  • Björn Bartling
  • Vanessa Valero
  • Roberto Weber
Original Paper
  • 248 Downloads

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.

Keywords

Negative externalities Scope of externalities Social responsibility Market experiments 

JEL Classification

C92 D62 M14 

Notes

Acknowledgements

We would like to thank the Co-Editor, Marie Claire Villeval, and two anonymous referees for helpful comments and suggestions. We also gratefully acknowledge financial support from the Swiss National Science Foundation (Grant Number 100018_165943).

Supplementary material

10683_2017_9549_MOESM1_ESM.docx (390 kb)
Supplementary material 1 (DOCX 389 kb)

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Copyright information

© Economic Science Association 2017

Authors and Affiliations

  • Björn Bartling
    • 1
  • Vanessa Valero
    • 1
  • Roberto Weber
    • 1
  1. 1.Department of EconomicsUniversity of ZurichZurichSwitzerland

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