Does Competition Destroy Ethical Behavior? /
Shleifer, Andrei.
Does Competition Destroy Ethical Behavior? / Andrei Shleifer. - Cambridge, Mass. National Bureau of Economic Research 2004. - 1 online resource: illustrations (black and white); - NBER working paper series no. w10269 . - Working Paper Series (National Bureau of Economic Research) no. w10269. .
February 2004.
Explanations of unethical behavior often neglect the role of competition, as opposed to greed, in assuring its spread. Using the examples of child labor, corruption, excessive' executive pay, corporate earnings manipulation, and commercial activities by universities, this paper clarifies the role of competition in promoting censured conduct. When unethical behavior cuts costs, competition drives down prices and entrepreneurs' incomes, and thereby reduces their willingness to pay for ethical conduct. Nonetheless, I suggest that competition might be good for ethical behavior in the long run, because it promotes growth and raises incomes. Higher incomes raise the willingness to pay for ethical behavior, but may also change what people believe to be ethical for the better.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Does Competition Destroy Ethical Behavior? / Andrei Shleifer. - Cambridge, Mass. National Bureau of Economic Research 2004. - 1 online resource: illustrations (black and white); - NBER working paper series no. w10269 . - Working Paper Series (National Bureau of Economic Research) no. w10269. .
February 2004.
Explanations of unethical behavior often neglect the role of competition, as opposed to greed, in assuring its spread. Using the examples of child labor, corruption, excessive' executive pay, corporate earnings manipulation, and commercial activities by universities, this paper clarifies the role of competition in promoting censured conduct. When unethical behavior cuts costs, competition drives down prices and entrepreneurs' incomes, and thereby reduces their willingness to pay for ethical conduct. Nonetheless, I suggest that competition might be good for ethical behavior in the long run, because it promotes growth and raises incomes. Higher incomes raise the willingness to pay for ethical behavior, but may also change what people believe to be ethical for the better.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.