Can incomplete information lead to better social outcomes?

Ratul Lahkar () and Vinay Ramani

Managerial and Decision Economics, 2020, vol. 41, issue 5, 771-783

Abstract: We consider a supply chain where manufacturers can be differentiated along two dimensions—product quality and cost of social responsibility effort. There are two types of manufacturers: high and low. Under complete information, high‐type manufacturers exert a greater level of social responsibility effort in comparison with the low‐type manufacturers. We then show that under incomplete information, high‐type manufacturers have an incentive to exert an even greater level of social responsibility effort. Surprisingly, the extent of effort put in by high‐type firms cannot be lower and, in some cases, can be strictly higher under incomplete information.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1002/mde.3136

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:wly:mgtdec:v:41:y:2020:i:5:p:771-783

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().