Abstract

The societal benefits derived from competitive markets certainly depend upon participants conforming to generally accepted notions of moral duty. These notions include negative duties such as those against fraud, deception, and coercion and also positive duties such as those that favor beneficence but with limits. This investigation examines the extent that product, capital, and internal-labor markets are capable of imposing conformance to society’s expectations of duty through both formally and informally organized boycotts. A categorization of classic and recent boycotts into those motivated by (i) establishing new norms, or (ii) enforcing existing generally accepted norms is provided. This categorization helps to explain why some boycotts are successful, and others not. Through this exploration, a contribution to the resolution of the so called “Adam Smith problem” concerning the morality-enforcing capability of the invisible hand is offered.