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

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journal contribution
posted on 2023-06-09, 08:40 authored by Anthony Heyes, Steve Martin
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.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Journal of Economics and Management Strategy

ISSN

1058-6407

Publisher

Wiley

Issue

2

Volume

27

Page range

206-220

Department affiliated with

  • Economics Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2017-11-07

First Open Access (FOA) Date

2019-12-27

First Compliant Deposit (FCD) Date

2017-11-06

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