Credit rationing and credit view: empirical evidence from an ethical bank in Italy

Attempts have been made in the empirical literature to identify credit rationing and its determinants using balance sheet data or evidence from corporate surveys. However, observational equivalence, identification problems, and interview biases are serious problems in these studies.We analyze directly the determinants of credit rationing in credit files by examining the difference between the amounts demanded by and supplied to each borrower, as shown by official bank records. Our findings provide microeconomic evidence that supports the credit view hypothesis by showing that the European Central Bank refinancing rate is significantly and positively related to partial (but not total) credit rationing. This finding is consistent with the hypothesis that this variable affects the total volume of bank loans

Nudging and corporate environmental responsibility: a natural field experiment

We devise a "nudging" natural field experiment to test the impact of a simple form of advertising on environmentally responsible products with/without the increase of the responsible product price. We find that the simple use of a small shelf poster explaining the importance of buying a green product (with/without a concurring price increase) generates significant changes in market shares for some of the product classes for both food and non-food products. Part of the effect is generated by the reduced price elasticity of consumers to the poster-plus-price-increase treatment

Nudging and corporate environmental responsibility: A natural field experiment

We devise a “nudging” natural field experiment to test the impact of a simple form of advertising on environmentally responsible products with/without the increase of the responsible product price. We find that the simple use of a small shelf poster explaining the importance of buying a green product (with/without a concurring price increase) generates significant changes in market shares for some of the product classes for both food and non-food products. Part of the effect is generated by the reduced price elasticity of consumers to the poster-plus-price-increase treatment

Let us buy sustainable! The impact of cash mobs on sustainable consumption: Experimental results

Cash mob is a practice where groups of people gather at local shops to buy a given product (usually with a strong sustainable feature) and make their decisions visible to the general public. With our paper we aim to assess the effectiveness of the cash mob as a behavioural tool and provide a better understanding of the behavioural triggers of consumers’ decision making process. We run a laboratory experiment where we mimic sustainable consumption and the cash mob treatment is embedded in a sequential game structure with/without an environmental frame. We find that the cash mob treatment has a positive gross effect, that is, the share of sustainable consumers is significantly higher in treated sessions. We also document a significant effect of expectations about the number of those eliciting a sustainable behaviour depending on participants’ previous choices. Our results suggest that cash mob-like mechanisms can help to solve social dilemmas like sustainable consumption with entirely private solutions (not based on punishment like taxes but on positive action), and with no costs for government budgets

The socially responsible choice in a duopolistic market: a dynamic problem of “ethical product” differentiation

The increasing attention of profit maximizing corporations to corporate social responsibility (CSR) is a new stylized fact of the contemporary economic environment. In our theoretical analysis we model CSR adoption as the optimal response of a profit maximizing firm to the competition of a not for profit corporate pioneer in the presence of a continuum of consumers with heterogeneous preferences towards the social and environmental features of the final good. CSR adoption implies a trade-off since, on the one side, it raises production costs but, on the other side, it leads to accumulation of “ethical capital”.We investigate conditions under which the profit maximizing firm switches from price to price and CSR competition by comparing monopoly and duopoly equilibria and their consequences on aggregate social responsibility and consumer welfare. Our findings provide a theoretical background for competition between profit maximizing incumbents and not for profit entrants in markets such as fair trade, organic food, ethical banking and ethical finance