We analyze reciprocal behavior when moral wiggle room exists. Dana et al. (2007) show that giving in a dictator game is only partly due to distributional preferences as the giving rate drops when situational excuses for selfish behavior are provided. Our binary trust game closely follows their...

The dictator game is a well-known task measuring prosocial preferences, in which one person divides a fixed amount of windfall money with a recipient. A key factor in real-world transfers of wealth is the concept of property ownership and consequently the related acts of giving and taking. Using...