A competitive equilibrium for a warm-glow economy

Allouch, Nizar

doi:10.1007/s00199-012-0689-z

Cited by 13 publications

(4 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A number of mechanisms such as punishment of free-riders [4], opt-out defaults [42][43] and reputation management [12] have been proposed to ameliorate the free-rider problem. Warm-glow, or its absence, is another key mechanism to help explain why free-riding occurs and as such it should be possible to harness the power of warm-glow to reduce free-riding [44][45]. Speci cally, we consider warm glow to be a mechanism that reinforces future cooperation [46].…”

Section: Warm-glow and The Problem Of Cooling Cooperatorsmentioning

confidence: 99%

Warming up Cooling Cooperators

Ferguson¹,

Lawrence²,

Gemelli³

et al. 2020

Preprint

View full text Add to dashboard Cite

The warm-glow of giving is one mechanism proposed to account for high levels of human cooperation. However, little is known about how warm-glow can be harnessed to sustain long-term cooperation to benefit wider society (vaccinations, blood donation). We argue that the power of warm-glow to sustain long-term cooperation cools offs over time but can be warmed-up with a simple intervention message. We test, and confirm this prediction, in a field-based experiment (n = 5,821) comparing warm-glow versus positive affect messages to predict long-term cooperation (blood donation) and confirm our findings in a subsequent implementation study comparing donation attendance in a 3 year pre-implementation period, prior to the warm-glow message being sent to all 1st time donors in Australia (Ns = 90,317, 93,430 & 89,606) to a 2 year post-implementation period (Ns = 81,766 & 88,551). Exogenously manipulated warm-glow can encourage long-term cooperation that benefits society. Wider societal implications are discussed.

show abstract

Section: Warm-glow and The Problem Of Cooling Cooperatorsmentioning

confidence: 99%

Warming up Cooling Cooperators

Ferguson¹,

Lawrence²,

Gemelli³

et al. 2020

Preprint

View full text Add to dashboard Cite

show abstract

“…In a recent paper, Allouch (2009) introduces the warm glow equilibrium concept as a competitive equilibrium for a warm glow economy. Similar to the Lindahl equilibrium, the warm glow equilibrium 2 provides a decentralized price mechanism achieving efficient outcomes.…”

Section: Warm Glow Equilibriummentioning

confidence: 99%

“…In the public goods literature, lately, the warm glow model, where consumers receive a direct benefit from their own public goods provision, has been put forward by Andreoni (1989, 1990) (see also Becker 1974 and Cornes and Sandler 1984) as an alternative description of public goods provision. In a recent paper, Allouch (2009) introduces a Lindahl‐like competitive equilibrium for a warm glow economy and provides the three fundamental theorems of general equilibrium (existence of equilibrium and the two welfare theorems). It is worth noting that the warm glow equilibrium coincides with the Lindahl equilibrium if we consider a standard formalization of utility functions.…”

Section: Introductionmentioning

confidence: 99%

A Core‐Equilibrium Convergence in a Public Goods Economy

Allouch

2010

J Public Economic Theory

Self Cite

View full text Add to dashboard Cite

This paper shows a core-equilibrium convergence in a public goods economy where consumers' preferences display warm glow effects. We demonstrate that if each consumer becomes satiated to other consumers' provision, then as the economy grows large the core shrinks to the set of Edgeworth allocations. Moreover, we show that an Edgeworth allocation can be decentralized as a warm glow equilibrium. Copyright � 2010 Wiley Periodicals, Inc..

show abstract

“…Applications of CSR to a general equilibrium setup have not been deeply analyzed so far. Two examples in this direction are Allouch () and Becchetti and Adriani (). In Becchetti and Adriani (), authors analyze a North–South model of trade, where a single consumption good is produced in the two countries.…”

mentioning

confidence: 99%

The Role of Income Distribution in the Diffusion of Corporate Social Responsibility

D’Alessandro

Fanelli

2014

Metroeconomica

View full text Add to dashboard Cite

The purpose of this paper is to investigate the link between CSR growth and income distribution. We present a general equilibrium model where social responsibility enters both firms' and consumers' decisions. The model admits the existence of multiple equilibria, each of them characterized by a different diffusion of CSR. We study the conditions under which there exists a virtuous circle which ties increases in the diffusion of CSR to reductions in income inequality and viceversa. Under certain circumstances, any policy which promotes the diffusion of CSR induces a reduction of income inequality. By contrast, when such conditions are not satisfied, only redistributive policies may generate the virtuous circle.JEL classification: D30; D50; D63; H30; M14.

show abstract

A competitive equilibrium for a warm-glow economy

Cited by 13 publications

References 36 publications

Warming up Cooling Cooperators

Warming up Cooling Cooperators

A Core‐Equilibrium Convergence in a Public Goods Economy

The Role of Income Distribution in the Diffusion of Corporate Social Responsibility

Contact Info

Product

Resources

About