Who Gains from Boycotts? A Welfare Analysis of Consumer Activism

17 Pages Posted: 20 Apr 2013

See all articles by Baran Han

Baran Han

KDI School of Public Policy and Management

Date Written: May 2013

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.

Suggested Citation

Han, Baran, Who Gains from Boycotts? A Welfare Analysis of Consumer Activism (May 2013). Review of Development Economics, Vol. 17, Issue 2, pp. 284-300, 2013, Available at SSRN: https://ssrn.com/abstract=2254213 or http://dx.doi.org/10.1111/rode.12032

Baran Han (Contact Author)

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

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