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022 _a09318658
040 _aMSU
_bEnglish
_cMSU
_erda
050 0 0 _aHB171.5 JOU
100 1 _aHeijnen, Pim
_eauthor
245 1 0 _aInformative advertising by an environmental group
_ccreated by Pim Heijnen
264 1 _aHeidelberg:
_bSpringer,
_c2013
336 _2rdacontent
_atext
_btxt
337 _2rdamedia
_aunmediated
_bn
338 _2rdacarrier
_avolume
_bnc
440 _aJournal of Economics
_vVolume 108, number 3
520 3 _aConsuming a product does not (necessarily) reveal the environmental damage it may cause. In terms of environmental damage, most goods are credence goods. Therefore, advertising and pricing rarely can transmit such information effectively to consumers. This article considers the scope with which an environmental group (EG) can signal this information to consumers via advertising and campaigning. Although an EG can inform the public, the welfare effects are ambiguous. Therefore, the EG may not have an incentive to acquire information about the firm’s production practices. However, when the firm chooses the level of environmental damage and the EG chooses whether to acquire information, there exists a mixed-strategy equilibrium for some parameter values, such that the EG acquires information, and the threat of advertising causes the firm to produce an environmentally friendly good.
650 _aEnvironmental group
_vEnvironmental quality
_xInformative advertising
856 _u10.1007/s00712-012-0284-6
942 _2lcc
_cJA
999 _c164789
_d164789