Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282022 
Year of Publication: 
2022
Series/Report no.: 
Discussion Paper No. 330
Publisher: 
Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition, München und Berlin
Abstract: 
In sequential interactions, both the agent's intention and the outcome of his choice may influence the principal's action. While outcomes are typically observable, intentions are more likely to be hidden, leaving potential wiggle room for the principal when deciding on a reciprocating action. We employ a controlled experiment to investigate how intentions and outcome affect the principal's actions and whether principals use hidden information as an excuse to behave more selfishly. We find that principals react mainly to the intention of the agent. When intentions are not revealed by default, principals tend to select into information based on their inclination to behave more prosocially. While information avoidance is frequent and selfishness is higher with hidden information, we do not find evidence of a strategic exploitation of moral wiggle room.
Subjects: 
information avoidance
dictator game
moral wiggle room
intentions
reciprocity
JEL: 
D91
C91
Document Type: 
Working Paper

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