Contagious "Social Market Enterprises": The Role of Fair Traders

Leonardo Becchetti and Giuseppina Gianfreda

Rivista di Politica Economica, 2007, vol. 97, issue 3, 51-84

Abstract: One of the effects of the introduction of fair trade goods is that of triggering socially responsible imitation of profit maximising sellers and distributors, thereby creating a consumer driven market mechanism which promotes equity and inclusion. To proof ourclaim we analyze the effects of a fair trader’s entry in a differentiation model where the profit maximizing incumbent mayreact in prices and social responsibility and its position on the segment of social responsibility needs to be advertised at some cost. We outline complementarity and substitution effects among relevant variables and explore incumbent’s incentives to cheat on his ethical stance.

JEL-codes: L11 L31 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.rivistapoliticaeconomica.it/2007/mag_giu/becchetti-gianfreda.php
Payment required

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rpo:ripoec:v:97:y:2007:i:3:p:51-84

Access Statistics for this article

Rivista di Politica Economica is currently edited by Gustavo Piga

More articles in Rivista di Politica Economica from SIPI Spa
Bibliographic data for series maintained by Sabrina Marino ().