Consumer activism, producer groups, and production standards
Article Abstract:
A study analyzes how groups of producers compete when consumers opt for expensive 'ethical' production technologies. Consumers cannot identify or monitor production technologies. Thus, producers can take advantage of their group's reputation by using cheaper 'unethical' technologies. Social pressures among the producer groups can ensure a long-term dominance of groups that largely depend on the ethical technology, if an ethical technology is Pareto-optimal. Competition among the producer groups can increase the ethical technology's average level of adoption for long periods despite the inability of social pressures to provide long-term support for the chosen technology.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1995
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Humans as factors of production: an evolutionary analysis
Article Abstract:
The idea that the basis for human tastes including economically relevant tastes is biological in origin is increasingly being acknowledged by economic theorists. No existing research exists on the impact of the evolution of tastes which results in more sophisticated questions pertaining to the use of humans as workers or as inputs in the production process including those issues studied pertaining to transaction costs. It is argued that preferences relevant for labor markets evolved in a Darwinian process.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1998
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