Radical activism and self-regulation: An optimal campaign mechanism

This article studies the problem faced by activists who want to maximize firms’ compliance with high environmental standards. Our focus is on radical activism which relies non-violent civil disobedience. The threat of disruptive actions used force firms concede, i.e., engage in self-regulation. We adopt a mechanism design approach characterize an optimal campaign. analysis indicates that least vulnerable and most polluting should be targeted while others are granted guarantee not exchange for concessions. characterization allows us study determinants activist’s strength how it affected repression, central feature find campaign relatively resilient repression creates incentives free ride prosecution individual firms. Next, we consider heterogeneity abatement costs optimizes allocation efforts innovation. discuss some other welfare properties