Week 3

Question 1

Pacheco Dean Payne - Green Prison

two types of strategy:

Answer 1

1. cooperative strategy: a player sacrifices individual gains in favor of collective benefits
2. defection strategy: individual benefits are given priority

Question 2

Pacheco Dean Payne - Green Prison

mutual defection could damage the whole industry

Answer 2

• when reputation of the industry is damaged
• when the natural resources necessary for the industry disappear
• when the government steps in with regulations that requires all companies to make costly changes

Question 3

Pacheco Dean Payne - Green Prison

three types of institutions influence behaviour in the green prison

Answer 3

industry norms - rules and behaviour that are enforced through punishment

property rights - a set of formal and informal rights to use and transfer resources (ownership)

government regulations - mandatory rules that are codified and enforced by governmental bodies

Question 4

Pacheco Dean Payne - Green Prison

two types of opportunities

Answer 4

Exogenous change (anyone can see them) - opportunities are discovered (outside)

• endogenous - opportunities are created (within)

Question 5

Klewitz & Hansen

the extent to which firms engaged in sustainability oriented innovation influences:

Answer 5

1. product innovation
   - cleaner production
   - eco-efficiency
2. organizational innovation
   - EMAS
   - SC management
3. process innovation
   - eco-design