By: |
Sebastian Kranz |
Abstract: |
This paper analyses competition of moral norms and institutions in a society
where a fixed share of people unconditionally complies with norms and the
remaining people act selfishly. Whether a person is a norm-complier or selfish
is private knowledge. A model of voting-by-feet shows that those norms and
institutions arise that maximize expected utility of norm-compliers, taken
into account selfish players' behavior. Such complier optimal norms lead to a
simple behavioral model that, when combined with preferences for equitable
outcomes, is in line with the relevant stylized facts from a wide range of
economic experiments, like reciprocal behavior, costly punishment, the role of
intentions, giving in dictator games and concerns for social efficiency. The
paper contributes to the literature on voting-by-feet, institutional design,
ethics and social preferences. |
Keywords: |
moral norms, social preferences, fairness, reciprocity, rule utilitarianism, voting-by-feet, farsighted-stability, cultural evolution, golden rule, social norms |
JEL: |
A13 C7 D02 D63 D64 D71 D8 Z13 |
Date: |
2006–05 |
URL: |
http://d.repec.org/n?u=RePEc:bon:bonedp:bgse11_2006&r=evo |