Prof. Dr. Carlos Alós-Ferrer (University of Cologne):
"Choice-induced preference change and self-perception theory"
Thursday, May 12, 10:00am – 11:30pm (WiSo Building, Room 110)
The collapse of a garment factory building in Bangladesh, the fires in Pakistan garment factories, the working conditions at Nike, Foxconn and Amazon fired the public debate on socially responsible production of (western) firms. The public calls for political interventions and prompts firms to act socially responsible. But what about consumers? Are they able to enforce socially responsible production through their purchasing behavior? The fact that the market for socially responsible goods is small although the majority of questionnaire respondents say that they would pay a mark-up for those goods motivates our experimental investigation. We experimentally study small economies and vary the market form as well as the policy regulations in our treatments. The results guide us to new insights on market design promoting socially responsible production through consumer behavior.