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Managing repugnance: how core-stigma shapes firm behavior
Journal of Institutional Economics ( IF 2.029 ) Pub Date : 2022-11-23 , DOI: 10.1017/s1744137422000455
Erwin Dekker , Julien Gradoz

This article argues for the need for the empirical analysis of how firms manage repugnance and core-stigmatization. To develop our empirical perspective, we compare the work on repugnance with the existing empirical literature in management on core-stigma and argue that core-stigmatization results from the mobilized repugnance. The core-stigmatized firm faces higher transaction costs. We demonstrate, through a case-study of the strategies of MindGeek/Pornhub in the online pornography market, how transaction costs economics can explain the choice of strategies to deal with core-stigma. Under most conditions, the increased transaction costs lead to vertical and lateral integration of the firm. In a dynamic setting, rival firms might use stigmatization to prevent the entry of a new competitor. Our second case-study on the early decades of the mail-order company Sears, Roebuck, and Company illustrates that repugnance, including racial discrimination, was mobilized by competitors to block the entry of the firm into the market.



中文翻译:

管理反感:核心耻辱如何塑造公司行为

本文认为有必要对企业如何应对反感和核心污名化进行实证分析。为了发展我们的实证视角,我们将反感方面的工作与现有的核心耻辱管理实证文献进行了比较,并认为核心耻辱化是由动员起来的反感造成的。核心企业面临着更高的交易成本。我们通过 MindGeek/Pornhub 在网络色情市场策略的案例研究,展示了交易成本经济学如何解释应对核心耻辱的策略选择。在大多数情况下,交易成本的增加会导致公司的纵向和横向整合。在动态环境中,竞争对手公司可能会利用污名化来阻止新竞争对手的进入。我们对邮购公司西尔斯罗巴克公司成立之初几十年的第二个案例研究表明,竞争对手利用包括种族歧视在内的反感情绪来阻止该公司进入市场。

更新日期:2022-11-23
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