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Certification and socially responsible production

机译：认证和对社会负责的生产

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In many markets, consumers are unable to distinguish between goods that are produced in a socially responsible way and goods that are not. In such situations, socially responsible production is not a profit-maximizing strategy, even if the premium that consumers are willing to pay exceeds the costs. Only firms that are genuinely motivated by social responsibility would then produce in this way, and there would be too little socially responsible production. Improved opportunities for voluntary certification could potentially reduce this problem by allowing firms to signal their type. We examine how the possibility of certification affects the share of socially responsible production. Our main result is that increased certification may reduce the share of socially responsible production by reducing prices in the market for uncertified products and thus crowd out socially responsible producers who do not certify. This provide a mechanism through which certification might have adverse effects on socially responsible production, even when the certification process is perfect and when there is perfect competition among the producers.
机译：在许多市场中，消费者无法区分以对社会负责的方式生产的商品和非社会责任的商品。在这种情况下，即使消费者愿意支付的溢价超过成本，对社会负责的生产也不是使利润最大化的策略。这样，只有真正受到社会责任激励的公司才会以这种方式进行生产，而对社会负责的生产将很少。自愿认证机会的增加可以通过允许公司发出自己的类型的信号来潜在地减少这个问题。我们研究了认证的可​​能性如何影响对社会负责的生产的份额。我们的主要结果是，增加认证可以通过降低未认证产品的市场价格来减少对社会负责的产品的份额，从而挤出那些没有认证的对社会负责的生产商。这提供了一种机制，通过该机制，即使在认证过程完美无缺且生产者之间存在完美竞争的情况下，认证也可能对社会责任产品产生不利影响。

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