The corporate legality game a lab experiment on the impact of policies, frames and information.

A company engaging in illicit practices can undermine competitors operating within legal boundaries, ultimately eroding the public good of legality and integrity. Recently established institutional legality ratings aim to address this issue. We investigate the impact of these ratings through a rando...

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Publicado en:Crime, Law & Social Change Vol. 82; no. 5; pp. 1213 - 1254
Autores principales: Becchetti, Leonardo, Pelligra, Vittorio, Rossetti, Fiammetta
Formato: Artículo
Publicado: Springer Nature Dec2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Dec2024
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      pub: Springer Nature
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        10.1007/s10611-024-10163-9
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        atl: The corporate legality game a lab experiment on the impact of policies, frames and information.
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        au:
          Becchetti, Leonardo
          Pelligra, Vittorio
          Rossetti, Fiammetta
        affil:
          https://ror.org/02p77k626 Department of Economics, University of Rome Tor Vergata, Via Columbia 2, 00133, Rome, Italy
          https://ror.org/003109y17 Department of Economics and Business, University of Cagliari. V.E S, Ignazio 17, 09123, Cagliari, Italy
          https://ror.org/05f950310 Faculty of Economics and Business, KU Leuven, Naamsestraat 69, 3000, Louvain, Belgium
      su:
        Cultural policy
        Consumers
        Fiscal policy
        Nash equilibrium
        Information design
      sug:
        subj:
          Cultural policy
          Consumers
          Fiscal policy
          Administration of General Economic Programs
          Public Finance Activities
          Nash equilibrium
          Information design
      keyword:
        C7
        C92
        Conformity
        Corruption
        H2
        Laboratory Experiment
        Redistribution
        C7
        C92
        Conformity
        Corruption
        H2
        Laboratory Experiment
        Redistribution
      ab: A company engaging in illicit practices can undermine competitors operating within legal boundaries, ultimately eroding the public good of legality and integrity. Recently established institutional legality ratings aim to address this issue. We investigate the impact of these ratings through a randomized experiment simulating redistributive policies. These policies tax "defectors" (buyers of unrated products) and benefit "co-operators" (buyers of legality-rated products) to promote legality and combat corruption. Our findings show that redistribution mechanisms, the legality frame, and conformity information design significantly mitigate the Prisoner's Dilemma, leading to notable deviations from the Nash Equilibrium. Concerning anti-corruption strategies, our results suggest that consumer willingness to pay for legality can be substantially boosted by redistribution policies and cultural processes inducing conformity to legality norms. This study highlights how legality ratings issued by institutions, when effectively communicated to consumers and combined with redistribution actions, can increase demand for legal products.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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