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Capturing moral economic context

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Author Info
Luiz Freitas () (Rochester Institute of Technology)
Jeffrey Wagner () (Rochester Institute of Technology)
Abstract

Multiple economic experiments suggest that the moral context of consumption and/or production influences willingness-to-pay and willingness-to-accept. Precisely how this influence should be modeled from a theoretical perspective, however, remains understudied. The prevailing view is that moral context can be captured using an extended utility approach in which “morality” enters the utility function as any other attribute of value. However, in our view the literature does not yet suggest practical modeling strategies that yield testable hypotheses. We show herein that the state-dependent preference approach quite naturally enables modeling of the moral concerns registered in experimental settings.

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File URL: http://economicsbulletin.vanderbilt.edu/2007/volume4/EB-06D60001A.pdf
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Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 4 (2007)
Issue (Month): 9 ()
Pages: 1-9
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Handle: RePEc:ebl:ecbull:v:4:y:2007:i:9:p:1-9

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Related research
Keywords: environmental valuation extended utility intrinsic value morality state-dependent preferences

Find related papers by JEL classification:
D6 - Microeconomics - - Welfare Economics
D0 - Microeconomics - - General

Cited by:
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  1. Jeffrey Wagner, 2007. "Plato’s Republic and liberal economic education for the twenty-first century," Economics Bulletin, Economics Bulletin, vol. 1(2), pages 1-10. [Downloadable!]
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This page was last updated on 2008-7-12.


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