Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203248 
Year of Publication: 
2019
Series/Report no.: 
KIT Working Paper Series in Economics No. 134
Publisher: 
Karlsruher Institut für Technologie (KIT), Institut für Volkswirtschaftslehre (ECON), Karlsruhe
Abstract: 
Ignorance enables individuals to act immorally. This is well known in policy circles, where there is keen interest in lowering moral ignorance. In this paper, we demonstrate the relevance of demand elasticity to ignorance by showing that small monetary incentives can significantly reduce ignorance. We contrast monetary incentives with social norms, which have little impact on ignorance and actually increase ignorance in less moral individuals. Using a longitudinal design, we document that ignorance is persistent across moral contexts and through time. We propose and structurally estimate a simple behavioral model in line with our findings.
Subjects: 
information avoidance
morality
unethical behavior
social norms
JEL: 
D83
D91
C91
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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