“Shop Until You Drop”: The Effects of Antihedonism and Environmentalism

In a vertically differentiated duopoly where consumers have heterogeneous preferences over the hedonic and environmental attributes of goods, we explore the effects of antihedonism and environmentalism, intended here as cultural paradigms altering consumers' preferences. We find that in a market where consumers prioritize hedonic concerns, antihedonism can reduce consumer surplus (CS), whereas an increase in environmentalism can raise CS. However, advocating for environmentalism over hedonism so that consumers prioritize environmental concerns can result in a significantly lower environmental surplus.