Morals in multi-unit markets

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. TI 2020-072/I

Classification and Topics

• Classification: Wirtschaft ; Externalities ; Design of Experiments: Laboratory, Individual ; Design of Experiments: Laboratory, Group Behavior
• Subject: replacement logic ; social responsibility ; markets ; externalities ; competition ; charity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ziegler, Andreas ; Romagnoli, Giorgia ; Offerman, Theo
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/229692
• Last update: 10.03.2025, 11:43 AM CET