Who Cares about Social Image?

Aufsätze referiert extern - Web of Science

Jana Friedrichsen, Dirk Engelmann

In: European Economic Review 110 (2018), S. 61-77


This paper experimentally investigates how concerns for social approval relate to intrinsic motivations to purchase ethically. Participants state their willingness-to-pay for both a fair trade and a conventional chocolate bar in private or publicly. A standard model of social image predicts that all participants increase their fair trade premium when facing an audience. We find that the premium is indeed higher in public than in private. This effect, however, is driven by participants who preferred a conventional chocolate bar over a fair trade one in a pre-lab choice. For those who chose the fair trade chocolate bar, public exposure does not change the fair trade premium. This is captured by a generalized model where intrinsic preferences and the concern for social approval are negatively correlated.

Jana Friedrichsen

Research Associate in the Firms and Markets Department

JEL-Classification: C91;D12
Keywords: Image concerns, Ethical consumption, Fair trade, Social approval, Experiments
Frei zugängliche Version: (econstor)
https://ars.els-cdn.com/content/image/1-s2.0-S0014292118301363-mmc1.pdf https://ars.els-cdn.com/content/image/1-s2.0-S0014292118301363-mmc2.zip