We investigate the elasticity of moral ignorance with respect to monetary incentives and social norm information. We propose that individuals suffer from higher moral costs when rejecting a certain donation, and thus pay for moral ignorance. Consistent with our model, we find significant...

Ignorance enables individuals to act immorally. This is well known in policy circles, where there is keen interest in lowering moral ignorance. In this paper, we demonstrate the relevance of demand elasticity to ignorance by showing that small monetary incentives can significantly reduce...

The steady increase in inequality over the past decades has revived a lively debate about what can be considered a fair distribution of income. Public support for the extent of redistribution typically depends on the perceived causes of income inequality, such as differences in effort, luck, or...

We investigate the elasticity of moral ignorance with respect to monetary incentives and social norm information. We propose that individuals suffer from higher moral costs when rejecting a certain donation, and thus pay for moral ignorance. Consistent with our model, we find significant...

We investigate the role of advisers in the transmission of ethically relevant information, a critical aspect of executive decision making in organizations. In our laboratory experiment, advisers are informed about the negative externalities associated with the decision-maker's choices and...

We conduct an experiment where subjects are matched in groups of three and vote on a moral transgression. Analyzing different voting rules, the frequency of votes for the moral transgression increases with the number of votes required for it. This effect persists when considering pivotal votes...

This paper addresses the effects of the revolving door phenomenon on the inequality of influence among firms. It shows that firms are not equal in their capacities to benefit from state connections. We first develop a theoretical model introducing the notion of "bureaucratic capital" and showing...

The board of director has a responsibility to investigate credible allegations that management has engaged in activity that is not in the interest of the company or its shareholders. In the case of illegal activity, the appropriate response is likely to be very clear. Less obvious are the...

We investigate the elasticity of preferences for moral ignorance with respect to monetary incentives and social norm information. We propose a model where uncertainty differentially decreases the moral costs of unethical behavior, and benchmark the demand curve for moral ignorance against a...

Extending the die rolling experiment of Fischbacher and Föllmi-Heusi (2013), we compare gender effects with respect to unethical behavior by individuals and by two-person groups. In contrast to individual decisions, gender matters strongly under group decisions. We find more lying in male...