Abstract

http://ssrn.com/abstract=1811788
 


 



Consumer Demand for Fair Labor Standards: Evidence from a Field Experiment on eBay


Michael J. Hiscox


Harvard University

Michael Broukhim


Stanford University

Claire Litwin


Harvard University

Andrea Woloski


Harvard University

April 12, 2011


Abstract:     
Surveys indicate that a majority of consumers would prefer to buy products made in workplaces with fair labor standards rather than alternatives and would be willing to pay a higher price for such products. There is no clear evidence, however, that many people would actually behave in this fashion when shopping. We provide new evidence on consumer behavior from experiments conducted on eBay. We find that labels with information about certified fair labor standards in factories making polo shirts had a substantial positive effect on bidding. On average, shoppers paid a 45% premium for ethically labeled versus unlabeled shirts.

Number of Pages in PDF File: 39

Keywords: consumer behavior, altruism, social responsibility, field experiments

JEL Classification: D12, D64, M14, C93

working papers series


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Date posted: April 17, 2011  

Suggested Citation

Hiscox, Michael J. and Broukhim, Michael and Litwin, Claire and Woloski, Andrea, Consumer Demand for Fair Labor Standards: Evidence from a Field Experiment on eBay (April 12, 2011). Available at SSRN: http://ssrn.com/abstract=1811788 or http://dx.doi.org/10.2139/ssrn.1811788

Contact Information

Michael J. Hiscox (Contact Author)
Harvard University ( email )
1737 Cambridge Street
Cambridge, MA 02138
United States
HOME PAGE: http://www.people.fas.harvard.edu/~hiscox/
Michael Broukhim
Stanford University ( email )
Stanford, CA 94305
United States
Claire Litwin
Harvard University ( email )
1875 Cambridge Street
Cambridge, MA 02138
United States
Andrea Woloski
Harvard University ( email )
1875 Cambridge Street
Cambridge, MA 02138
United States
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