Price reactions when consumers are concerned about pro-social reputation
Laura Mørch Andersen () and
Lars Hansen ()
Additional contact information
Laura Mørch Andersen: Department of Food and Resource Economics, University of Copenhagen
No 2014/09, IFRO Working Paper from University of Copenhagen, Department of Food and Resource Economics
In this paper, we propose a reputation-signalling model of demand for consumer goods containing pro-social characteristics such as a ‘fair trade’ or ‘organic’ certification. We show that reputation signalling can reverse price reactions resembling the crowding-out of pre-existing motives for pro-social behavior seen in situations of volunteering and charitable giving. Finally, using a unique combination of questionnaire and purchase panel data, we present evidence of such reputation-driven reversal of price reactions in the Danish market for organic milk.
Keywords: net-crowding out; reversed price reactions; pro-social reputation; reputation signalling; consumer goods (search for similar items in EconPapers)
JEL-codes: D03 D11 D12 D64 D82 D51 (search for similar items in EconPapers)
Pages: 58 pages
New Economics Papers: this item is included in nep-mkt and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:foi:wpaper:2014_09
Access Statistics for this paper
More papers in IFRO Working Paper from University of Copenhagen, Department of Food and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by Geir Tveit ().