Contents

Who Gains from Boycotts? A Welfare Analysis of Consumer Activism

Han, Baran

Abstract

This paper explores the welfare consequences of product boycotts by linking product and labor markets. Consumers' threat of boycott can affect the firm's decision such as production location, size of operation and wage rate. Such conscientious action, however, can actually result in a welfare loss of the workers of concern as well as consumers themselves. The analysis suggests that consumers set their goals by studying the labor market and coordinating with local groups rather than demanding what may seem righteous.

Issue Date
2013-05
Publisher
John Wiley & Sons
DOI
10.1111/rode.12032
Journal Title
Review of Development Economics
Start Page
284
End Page
300
ISSN
1363-6669
Language
English
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