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American Economic Review: Vol. 100 No. 4 (September 2010)
AER Volume. 100, Issue 4 | Next Article
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Morally Motivated Self-Regulation
Article Citation
Baron, David P. 2010. "Morally Motivated Self-Regulation."
American Economic Review,
100(4): 1299-1329.
DOI: 10.1257/aer.100.4.1299
DOI: 10.1257/aer.100.4.1299
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 nonprofit enforcement. Enforcement through social pressure imposed by NGOs also expands the scope of self-regulation. (JEL D64, H41, L51)
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Full-text Article
Authors
Baron, David P. (Stanford U and Northwestern U)
JEL Classifications
D64: Altruism
H41: Public Goods
L51: Economics of Regulation
H41: Public Goods
L51: Economics of Regulation
