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Voting with the Wallet

Author

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  • Leonardo Becchetti

    (Department of Economics, Universitˆ Tor Vergata)

Abstract
The vote with the wallet is a new, emerging feature of economic participation and democracy in the globally-integrated market economy. This expression identifies the pivotal role that responsible consumption and investment can play in addressing social and environmental emergencies which have been aggravated by the asymmetry of power between domestic institutions and global corporations. In this paper, we examine (both in general and by using examples drawn from the financial and non-financial sectors) how ÒvotingÓ for producers which are at the forefront of a three-sided efficiency which reconciles the creation of economic value with social and environmental responsibility, may generate contagion effects by triggering ethical imitation of traditional profit-maximizing actors, thereby enhancing the production of positive social and environmental externalities. Within this new framework policies which reduce the search and information costs of voting with the wallet may help socioeconomic systems to exploit the bottom-up market forces of other-regarding preferences, thereby enhancing opportunities to achieve well-being with reduced top-down government intervention

Suggested Citation

  • Leonardo Becchetti, 2011. "Voting with the Wallet," Econometica Working Papers wp33, Econometica.
    • Handle: RePEc:ent:wpaper:wp33
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    2. Massimo Cermelli & Umberto Di Maggio & Giuseppe Notarstefano & Giuseppe Terzo, 2019. "Social capital and social entrepreneurship. Cross-country evidence for development and cohesion," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 73(2), pages 87-98, April-Jun.
    3. Federica Nalli, 2023. "What Mutual Assistance Is, and What It Could Be in the Contemporary World," Journal of Business Ethics, Springer, vol. 182(4), pages 1041-1053, February.

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    More about this item

    Keywords

    social responsibility; other regarding preferences.;

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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