The Vote With the Wallet as a Multiplayer Prisoner’s Dilemma

Becchetti LeonardoSalustri Francesco
CEIS Research Paper
Socially responsible consumers and investors are increasingly using their consumption and saving choices as a “vote with the wallet” to award companies which are at vanguard in reconciling the creation of economic value with social and environmental sustainability. In our paper we model the vote with the wallet as a multiplayer prisoner’s dilemma, outline equilibria and possible solutions to the related coordination failure problem, apply our analysis to domains in which the vote with the wallet is empirically more relevant, and provide policy suggestions
Number: 359
Keywords: Corporate Social Responsibility, Multiplayer Prisoner’s Dilemma, Voting with the Wallet
JEL codes: C72,C73,D11,H41,M14
Volume: 13
Issue: 10
Date: Sunday, November 8, 2015
Revision Date: Sunday, November 8, 2015