On the Sources of Consumer Boycotts Ineffectiveness
Journal of Environment and Development, Vol. 18, No. 3, 2009
Posted: 7 Oct 2009
Date Written: 2009
This article investigates weaknesses of consumer boycotts. First, usual shortcomings of collective action, such as coordination failure and free riding, reduce considerably the success likelihood. Second, consumers with the highest ability to hurt the targeted firm’s profit also have the highest opportunity cost of boycotting. Thus, they are less likely to participate in the boycott. Conversely, the most involved consumers have high environmental preferences and small amounts of consumption, which prevent them from hurting the firm’s profit enough.
Keywords: consumer boycott, war of attrition, environment, technology choice
JEL Classification: D11, D21, Q59
Suggested Citation: Suggested Citation