Voluntary agreements with industry offer many examples of overcompliance with respect to environmental standards. Such phenomena seem to be irrational but appear less surprising considering firms' strategies are aimed to internalise environmental quality. We model the choice of the environmental...

The purpose of the paper is to narrow the gap between the widespread use of voluntary agreements and research on the rationale of such approaches. A typical example are voluntary agreements of many industries to reduce carbon dioxide emissions because of global warming. If the industry...

We study voluntary disclosure strategies in leader-follower games where firms choose real actions sequentially after simultaneously disclosing information. We show that the leader incurs an endogenous consistency cost when withholding information because it must choose a suboptimal real action...

A large literature in strategy and management has focused on why firms self-regulate and "signal green." We show this decision becomes more complex when regulators have enforcement discretion, and both firms and regulators act strategically. We model the managerial decision whether to signal the...

Emotional reactions like anger can cause rejection of unfair ultimatums at a cost to oneself. A possible ameliorating strategy is self-regulation: there is evidence that binding goals are an effective tool for controlling emotions and successful goal pursuit. The present study tests the...

Unethical pro-organizational behavior (UPB) is unethical behavior driven by an intention to assist an organization. This study is one of the first attempts to examine the consequences of UPB. We argue that such types of behaviors can induce failure in self-regulation and thereby give rise to...