Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87708
Authors: 
Rothenhäusler, Dominik
Schweizer, Nikolaus
Szech, Nora
Year of Publication: 
2013
Series/Report no.: 
Working Paper Series in Economics, Karlsruher Institut für Technologie (KIT) 47
Abstract: 
We study how institutional design in influences moral transgression. People are heterogeneous in their feelings of guilt and can share guilt with others. Institutions determine the number of supporters necessary for immoral outcomes to occur. With more supporters required, every supporter can share guilt more easily. This facilitates becoming a supporter. Conversely, an institution requiring more supporters must rely on people who have higher individual moral standards. We analyze individual thresholds for agreeing to a transgression, depending on the available options for sharing guilt by institutional design. On the aggregate level, we study how institutions affect the likelihood of immoral outcomes.
Subjects: 
Moral Decision Making
Shared Guilt
Group Absolution
Diffused Responsibility
Institutional Design
Committee Decisions
Moral Transgression
JEL: 
D01
D03
D23
D63
D82
Document Type: 
Working Paper

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