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A Note on Moral Licensing and Foot-In-The-Door Effect

Author

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  • Alistair Ulph
  • Luca Panzone
  • Denis Hilton

Abstract

Literature in economics and psychology on moral behaviour explores the contexts in which people act in ways that are consistent or inconsistent with their past actions. Such inconsistencies appear to violate economists' assumption of rational consumer behaviour. In this note we show that a simple model of rational (utility-maximising) consumer behaviour, in both static and dynamic forms, can explain both consistent and inconsistent behaviour.

Suggested Citation

  • Alistair Ulph & Luca Panzone & Denis Hilton, 2019. "A Note on Moral Licensing and Foot-In-The-Door Effect," CESifo Working Paper Series 7857, CESifo.
    • Handle: RePEc:ces:ceswps:_7857
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp7857.pdf
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    References listed on IDEAS

    as
    1. Roland Bénabou & Jean Tirole, 2011. "Identity, Morals, and Taboos: Beliefs as Assets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 805-855.
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    Keywords

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    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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