infonet-economy

Motivated by potential savings, an increasing number of consumers travel to neighboring countries for the main purpose of shopping. This cross-border shopping might seriously harm local economies, for example in terms of revenue, unemployment, and social well-being.
In a quasi-field experiment, we show that cross-border shoppers are aware of their irresponsible behavior and feel inner conflicts. These conflicts affect their emotions and their intended future purchase behaviors. As consumers' inner conflicts depend on who they blame for the price differences (either national retailers or foreign economies), public policy makers should actively communicate the reasons for price differences between neighboring countries.