Formal ModelsEffective reputation management is anticipatory and strategic. This is especially the case when a reputational crisis arises from a targeted campaign by interested third parties, such as advocacy groups. The goal? Forcing a company to change its practices in line with that party's social and political objectives. The strategic interactions between firms and activists are complex and require the use of mathematical models, some are which are presented in this section.
1. Baron, D., & Diermeier, D. (2007). Strategic activism and non-market strategy. Journal of Economics and Management Strategy, 16(3),599-634.
For a brief overview of this paper, read Kellogg Insight: Strategic Activism and Nonmarket Strategy - When firms become the target of activists.
2. Diermeier, D., & Van Mieghem, J. (2008). Voting with your pocket book: A stochastic model of consumer boycotts. Mathematical and Computer Modeling, 48, 1497-1509.
3. Diermeier, D. (2007). Private politics: A research agenda. The Political Economist, XIV, 1-2.