The Industrial Organization of Private Politics∗
نویسندگان
چکیده
Private politics social pressure in led by social activists that use confrontational and cooperative strategies to cause firms to provide social benefits. This paper presents theories of the supply of social pressure by activists and the demand for social pressure as represented by the attractiveness of firms as targets and partners. A confrontational activist can drive potential targets into competition for an engagement with a cooperative activist, as characterized by an ascending auction. A moderately socially responsible firm is more likely than a profit-maximizing firm to win the engagement with the cooperative activist. The threat of confrontation creates a positive externality for the cooperative activist, which has an incentive to participate in the campaign of the confrontational activist.
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