Discussion Sheet
Ramon Casadesus-Masanell, Michael Crooke, Forest Reinhardt, Vishal Vasishth. (2009) “Households’ Willingness to Pay for “Green” Goods: Evidence from Patagonia’s Introduction of Organic Cotton Sportswear,” Journal of Economics and Management Strategy, 18 (1): 203- 233
List the different mechanisms for bundling private and public goods and give examples of each.
According to the authors, how is dolphin safe tuna different from organic cosmetics?
There are several ways to green brown clothing. What are they? Which ones of those did Patagonia adopt? The answer will help you figure out the difference between an organic shirt and a shirt made out of organic cotton.
A spokesmen from Patagonia argues that there is no tradeoff between the quality of the shirts and their environmental impact. What does that mean? Do you agree?
Why do the author include data on snap Ts when they are not made out of cotton?
What consumer attributes are captured by the data? How does Patagonia’s typical consumer look like?
Summarize the findings