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Moral Norms in a Partly Compliant Society

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  • Kranz, Sebastian

Abstract

This paper analyses competition of moral norms and institutions in a society where a fixed share of people unconditionally complies with norms and the remaining people act selfishly. Whether a person is a norm-complier or selfish is private knowledge. A model of voting-by-feet shows that those norms and institutions arise that maximize expected utility of norm-compliers, taken into account selfish players' behavior. Such complier optimal norms lead to a simple behavioral model that, when combined with preferences for equitable outcomes, is in line with the relevant stylized facts from a wide range of economic experiments, like reciprocal behavior, costly punishment, the role of intentions, giving in dictator games and concerns for social efficiency. The paper contributes to the literature on voting-by-feet, institutional design, ethics and social preferences.

Suggested Citation

  • Kranz, Sebastian, 2006. "Moral Norms in a Partly Compliant Society," Bonn Econ Discussion Papers 11/2006, University of Bonn, Bonn Graduate School of Economics (BGSE).
    • Handle: RePEc:zbw:bonedp:112006
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    2. Rothenhäusler, Dominik & Schweizer, Nikolaus & Szech, Nora, 2018. "Guilt in voting and public good games," European Economic Review, Elsevier, vol. 101(C), pages 664-681.
    3. Blanco, Mariana & Engelmann, Dirk & Koch, Alexander K. & Normann, Hans-Theo, 2014. "Preferences and beliefs in a sequential social dilemma: a within-subjects analysis," Games and Economic Behavior, Elsevier, vol. 87(C), pages 122-135.
    4. Miettinen, Topi, 2013. "Promises and conventions – An approach to pre-play agreements," Games and Economic Behavior, Elsevier, vol. 80(C), pages 68-84.
    5. Bergh, Andreas & Wichardt, Philipp C., 2018. "Accounting for context: Separating monetary and (uncertain) social incentives," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 72(C), pages 61-66.

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    More about this item

    Keywords

    moral norms; social preferences; reciprocity; fairness; rule utilitarianism; voting-by-feet; cultural evolution; golden rule; social norms;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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