We present a framework that incorporates both moral motivations and fairness considerations into utility. The main idea is that individuals face a preference trade-off between their material individual interest and their desire to follow moral norms. In our model, we assume that moral motivation...

In this thesis I present three essays in which the influence of heuristics on individual decision making is analyzed and two essays dealing with behavioral aspects of moral costs. In chapter two, we investigate the effect a traders’ decision can have on the disposition effect heuristic when...