SSRN Electronic Journal,
Journal Year:
2022,
Volume and Issue:
unknown
Published: Jan. 1, 2022
Disclosure
about
many
product
attributes
related
to
externalities
is
not
mandatory,
and
consumers
have
rely
on
the
information
strategically
disclosed
by
manufacturers.
I
show
that
under
voluntary
disclosure,
dirty
manufacturers
can
mislead
exploiting
a
phenomenon
of
wishful
belief
formation.
Bounded
reasoning
prevents
from
deducing
production
processes
disclosure
behavior.
The
resulting
subjective
uncertainty
gives
bite
formation,
which
exploit
through
strategic
use
vagueness.
These
misperceptions
reduce
pressure
demand
side
production,
with
important
implications
for
role
mandatory
regulate
externalities.
SSRN Electronic Journal,
Journal Year:
2022,
Volume and Issue:
unknown
Published: Jan. 1, 2022
Lobbying
is
often
expected
to
lower
or
prevent
environmental
regulations.
A
crucial
question
whether
such
beliefs
affect
individuals'
willingness
engage
in
pro-environmental
behavior.
I
address
this
research
by
conducting
a
survey
experiment
with
large
heterogeneous
sample
from
Germany.
In
the
experiment,
first
induce
random
variation
about
impact
of
lobbying
on
climate
protection.
Afterward,
exploit
estimate
causal
effect
these
consider
both
observed
and
self-reported
behaviors.
While
all
point
estimates
suggest
that
expecting
more
negative
makes
individuals
behave
less
pro-environmentally,
only
behaviors
statistically
significant.
SSRN Electronic Journal,
Journal Year:
2022,
Volume and Issue:
unknown
Published: Jan. 1, 2022
Disclosure
about
many
product
attributes
related
to
externalities
is
not
mandatory,
and
consumers
have
rely
on
the
information
strategically
disclosed
by
manufacturers.
I
show
that
under
voluntary
disclosure,
dirty
manufacturers
can
mislead
exploiting
a
phenomenon
of
wishful
belief
formation.
Bounded
reasoning
prevents
from
deducing
production
processes
disclosure
behavior.
The
resulting
subjective
uncertainty
gives
bite
formation,
which
exploit
through
strategic
use
vagueness.
These
misperceptions
reduce
pressure
demand
side
production,
with
important
implications
for
role
mandatory
regulate
externalities.