Buy Local and Social Interaction
研究消费者因利他或社区偏好而支持本地产品时，社会互动如何影响购买本地运动，并分析不同市场结构下本地化的利弊。
This paper examines the buy local movement using social interactions. Social interaction arises if some consumers have preferences for local economic output due to altruism toward local producers and/or because of local amenities that benefit the community. This introduces an incentive for some consumers to advocate for localism and convert other consumers to buy locally. However, when there are competing communities, global efforts to buy more local products leads to lower utility from consumption and, under some scenarios, no increases in local production. This paper analyzes the benefits and costs of buying locally under various types of localism and market structures.