Östling, Robert () (Institute for International Economic Studies)
Abstract
This paper extends standard consumer theory to account for endogenous moral motivation. Building on cognitive dissonance theory, I show how moral values are affected by changes in prices and income. The key insight is that changes in prices and income that lead to higher consumption of an immoral good also affect the moral values held by the consumer so that the good is considered less immoral. A preliminary empirical analysis based on the World Values Survey is consistent with the model's predictions with respect to income.
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Length: 27 pages Date of creation: 21 Sep 2006 Date of revision:
17 Oct 2007 Publication status: Published in The B.E. Journal of Economic Analysis & Policy (Advances), 2009. Handle: RePEc:hhs:hastef:0635
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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[Downloadable!]
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