Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249001 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 9456
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We investigate how moral considerations, background conditions and risk can trigger resistance to implement trading institutions. We provide survey results on moral opposition to trade on several goods and services like body organs, sex services, surrogate mothers, trade with developing nations, and trade with carbon emissions. Complementary experimental evidence allows identifying reasons for opposing trade going beyond pure moral considerations. We relate the opposition to trade in experimental and field contexts to an aversion to imposing risks on others. We then vary both background conditions and the riskiness from engaging in actual trade in the experiment. We show that distributional concerns primarily drive opposition to trade. Providing less information about individual background conditions and distributing gains from trade more equally alleviates opposition to trade.
Subjects: 
trade
morality
fairness
distribution
experiment
JEL: 
C90
D63
I14
Document Type: 
Working Paper
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