Research / BFI Working PaperJan 10, 2022

Selfish Corporations

Motivated by the public debate regarding corporate responsibility, we construct a memory-based cognitive model of decision making to illustrate how corporate and political communication can impact policy preferences. We test the predictions of our model in a new large-scale experimental survey of U.S. citizens on their support for economic policies such as corporate bailouts. We first establish that the public demands corporations to behave better within society, a sentiment we label “big business discontent.” Then, using random variation in the order of survey sections and in the exposure to animated videos, we confirm two key predictions of our model. First, messages, or cues, that prime respondents to think about policy through the lens of corporate responsibility make people more averse to bailouts. Second, attempts to paint a positive public image of big business can actually backfire, as they focus attention on an aspect of the policy decision on which the public has well-established negative views.

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BFI Working Paper Jan 10, 2022

Revealing Corruption: Firm and Worker Level Evidence from Brazil

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Topics:  Employment & Wages