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Self-esteem, Moral Capital, and Wrongdoing

Author

Listed:
  • Marko Tervio

    (UC Berkeley)

  • Ernesto Dal Bo

    (Stanford University)

Abstract

In order to help understand adherence to moral standards and the force of intrinsic motivation, we present an infinite-horizon model where an individual receives random temptations (such as bribe offers) and must decide which to resist. Temptations yield consumption value, but keeping a good self-image (a high belief of being the type of person that resists) yields self-esteem. Individual actions depend both on types and intent, so selecting a good intent does not guarantee good behavior and past resistance is informative of a good type. We identify conditions for individuals to build an introspective reputation for goodness ("moral capital") and for good actions to lead to a stronger disposition to do good. Bad actions destroy moral capital and lock-in further wrongdoing. Economic shocks that result in higher temptations have persistent effects on wrongdoing that fade only as new generations replace the shocked cohorts. Societies with the same moral fundamentals may display different wrongdoing rates depending on how much past luck has polarized the distribution of individual beliefs. The model helps rationalize taboos, harsher punishment of repeat offenders, and a tendency of individuals with low moral capital to enter high-temptation activities.

Suggested Citation

  • Marko Tervio & Ernesto Dal Bo, 2008. "Self-esteem, Moral Capital, and Wrongdoing," 2008 Meeting Papers 245, Society for Economic Dynamics.
    • Handle: RePEc:red:sed008:245
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    References listed on IDEAS

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    Cited by:

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    2. Nadine Chlaß & Peter G. Moffatt, 2017. "Giving in Dictator Games - Experimenter Demand Effect or Preference over the Rules of the Game?," Jena Economics Research Papers 2012-044, Friedrich-Schiller-University Jena.
    3. S. Nageeb Ali, 2011. "Learning Self-Control," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 857-893.
    4. Augenblick, Ned & Cunha, Jesse M. & Dal Bó, Ernesto & Rao, Justin M., 2016. "The economics of faith: using an apocalyptic prophecy to elicit religious beliefs in the field," Journal of Public Economics, Elsevier, vol. 141(C), pages 38-49.
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    6. Ann-Kathrin Koessler & Stefanie Engel, 2021. "Policies as Information Carriers: How Environmental Policies May Change Beliefs and Consequent Behavior," International Review of Environmental and Resource Economics, now publishers, vol. 15(1-2), pages 1-31, July.

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • Z1 - Other Special Topics - - Cultural Economics

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