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An Experiment on the Motivation and the Effects of Socially Responsible Market Behavior

Iván Barreda-Tarazona, Aurora García-Gallego, Nikolaos Georgantzis, Ainhoa Jaramillo-Gutierrez, Gerardo Sabater-Grande

Abstract


We report data from an experiment designed to investigate whether firms’ concerns for socially beneficial objectives is the result of strictly economic motivation or, alternatively, whether the non selfish hypothesis survives after strictly economic motivations have been accounted for. We confirm this conjecture showing that, even when firms use altruistic donations as a profit oriented differentiation strategy, some of their investment is not recovered from their market activities maintaining at least a part of their pro-social behavior within the purely altruistic domain.

Keywords


market altruism, experiment, corporate social responsibility, pricing.

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