Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Egg-timer session: Behavioral economics Location: Auditorium J: Aina Uhde Session Chair: Michela Boldrini, Bocconi University | |
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Fighting over Environmental Salience Otto-Friedrich-Universität Bamberg, Germany When consumers prefer to buy goods with high environmental quality and firms differ in their environmental qualities, firms have incentives to fight over environmental salience and thereby influence consumers' attention to the environmental dimension of the goods. A green firm prefers environmental quality to be salient, while a brown firm prefers environmental quality to remain shrouded. We model the firms' fight over salience as an advertising contest. We show that such a contest increases social welfare if firms are sufficiently environmentally differentiated and marginal damages from emissions are sufficiently large. In addition, we analyze the impact of emission taxes and subsidies for clean production on social welfare. We show that full internalization of the external effects is not always optimal; a range of situation exists where partial or no internalization is optimal. | |