On the scope of externalities in experimental markets

Vanessa Valero (), Roberto Weber and Björn Bartling
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Vanessa Valero: UZH - Universität Zürich [Zürich] = University of Zurich
Roberto Weber: UZH - Universität Zürich [Zürich] = University of Zurich
Björn Bartling: UZH - Universität Zürich [Zürich] = University of Zurich

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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 (search for similar items in EconPapers)
Date: 2017-01-01
Note: View the original document on HAL open archive server: https://hal.science/hal-04739458v1
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Published in Experimental Economics, 2017, 22, pp.610-624

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