Inefficient NGO labels: strategic proliferation and fragmentation in the market for certification

Heyes, Anthony and Martin, Steve (2018) Inefficient NGO labels: strategic proliferation and fragmentation in the market for certification. Journal of Economics and Management Strategy, 27 (2). pp. 206-220. ISSN 1058-6407

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Abstract

NGO certication is a prerequisite for corporate engagement in enhanced social behaviors in many settings. Labels with broad scope (like sustainability) coexist with niche competitors much narrower in scope (like bird-friendliness). When NGOs compete for adoptions the wrong suite of schemes emerges, providing a rationale for regulation. An incumbent NGO may strategically narrow the breadth of its label to deter entry of competing schemes, reducing welfare. Even when entry is accommodated, welfare is compromised. Modeling multi-issue competition between NGOs allows us to be the first to analyze label fragmentation and provide a novel perspective on proliferation that has frustrated practitioners.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Depositing User: Anthony Heyes
Date Deposited: 07 Nov 2017 09:11
Last Modified: 03 Jul 2018 11:01
URI: http://sro.sussex.ac.uk/id/eprint/70960

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