In theory, eco-labels have great potential to reduce the environmental and social impact of products via consumer choice. In practice, the diffusion of eco-labels remains limited, with consumers expressing concerns about their value. One problem is a perceived tradeoff between the eco-label...

This paper tests Tirole (1996)’s theory about the link between individual and collective reputation. We estimate an interaction model in which a single collective reputation both determines and is determined by a series of individual reputations. Using detailed survey data about the image of...