TITLE:
Towards Understanding Prices and Ethics: Ethical Consumers with Price-Dependent Utilities
AUTHORS:
Pascal Stiefenhofer
KEYWORDS:
Ethical Consumption, Price-Dependent Utility, Ethical Prices
JOURNAL NAME:
Theoretical Economics Letters,
Vol.11 No.3,
June
3,
2021
ABSTRACT: This paper analysis ethical consumption behavior
with price-dependent ethical preferences. It extends the definition of goods to
include ethical values in the preferences and introduces a mathematically
tractable definition of social labels paving the way for new theoretical and
empirical developments. Relationships between the standard economic model and the
ethical consumption model with price-dependent utilities are established.