Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229692
Authors: 
Ziegler, Andreas
Romagnoli, Giorgia
Offerman, Theo
Year of Publication: 
2020
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2020-072/I
Abstract: 
Recent work examines whether morals are eroded in single-unit markets (Falk & Szech, 2013; Bartling, Fehr & Ozdemir, 2020). These markets provide market power to individual traders, which limits the roles of two forces; (i) replacement logic, whereby immoral trading is justified by the belief that others would trade otherwise; (ii) market selection, by which the least moral trader determines quantities. In an experiment, we compare single-unit to (more common) multi-unit markets which may activate these forces. We find that, in contrast to single-unit markets, multi-unit markets show full erosion of morals. Especially the replacement logic drives this finding.
Subjects: 
replacement logic
social responsibility
markets
externalities
competition
charity
JEL: 
D62
C91
C92
Document Type: 
Working Paper

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