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Buy Local and Social Interaction

Author

Listed:
  • Jason Winfree
  • Philip Watson
Abstract
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.

Suggested Citation

  • Jason Winfree & Philip Watson, 2021. "Buy Local and Social Interaction," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1454-1477, August.
    • Handle: RePEc:wly:ajagec:v:103:y:2021:i:4:p:1454-1477
    DOI: 10.1111/ajae.12186
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    References listed on IDEAS

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