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American Economic Review Vol. 100 No. 4 2010

Morally Motivated Self-Regulation

David P. Baron

Graduate School of Business, Stanford University, 518 Memorial Way, Stanford, CA 94305-5015 and Kellogg Graduate School of Management, Northwestern University, Evanston, IL 60208.

Abstract

Self-regulation is the private provision of public goods and private redistribution. This paper examines the scope of self-regulation motivated by altruistic moral preferences that are reciprocal and stronger the closer are citizens in a socioeconomic distance. The focus is on the role of organizations in increasing self-regulation by mitigating free-rider problems. Social label and certification organizations can expand the scope of self-regulation but not beyond that with unconditional altruism. Enforcement organizations expand the scope of self-regulation farther, and for-profit enforcement is more aggressive than non-profit enforcement. Enforcement through social pressure imposed by NGOs also expands the scope of self-regulation.

DOI
10.1257/aer.100.4.1299
Volume
100
Issue
4
Pages
1299-1329
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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