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Mean markets or kind commerce?

Author

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  • Dufwenberg, Martin
  • Johansson-Stenman, Olof
  • Kirchler, Michael
  • Lindner, Florian
  • Schwaiger, Rene

Abstract

Does market interaction influence morality? We study a particular angle of this classic question theoretically and experimentally. The novelty of our approach is to posit that people are motivated by reciprocity – an urge many argue affects humans. While many have suggested that market interactions make people more selfish, our reciprocity-based theory allows that market interaction on the contrary induces more prosociality. Our experiment provides a test of the empirical relevance of such an effect, in some highly stylized settings. The results are broadly (but not completely) supportive. They may shed light on the development of morality and prosocial behavior over time, with respect to episodes in history where the nature of commerce was transformed.

Suggested Citation

  • Dufwenberg, Martin & Johansson-Stenman, Olof & Kirchler, Michael & Lindner, Florian & Schwaiger, Rene, 2022. "Mean markets or kind commerce?," Journal of Public Economics, Elsevier, vol. 209(C).
    • Handle: RePEc:eee:pubeco:v:209:y:2022:i:c:s0047272722000500
    DOI: 10.1016/j.jpubeco.2022.104648
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    • Martin Dufwenberg & Olof Johansson Stenman & Michael Kirchler & Florian Lindner & Rene Schwaiger, 2021. "Mean Markets or Kind Commerce?," Working Papers 2021-07, Faculty of Economics and Statistics, Universität Innsbruck.

    References listed on IDEAS

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    Cited by:

    1. Björn Bartling & Vanessa Valero & Roberto A. Weber & Lan Yao, 2024. "Public Discourse and Socially Responsible Market Behavior," American Economic Review, American Economic Association, vol. 114(10), pages 3041-3074, October.
    2. Bartling, Björn & Özdemir, Yagiz, 2023. "The limits to moral erosion in markets: Social norms and the replacement excuse," Games and Economic Behavior, Elsevier, vol. 138(C), pages 143-160.
    3. Alger, Ingela & Rivero-Wildemauwe, José Ignacio, 2024. "Doing the right thing (or not) in a lemons-like situation: on the role of social preferences and Kantian moral concerns," TSE Working Papers 24-1531, Toulouse School of Economics (TSE).
    4. Choi, Ginny Seung & Storr, Virgil Henry, 2023. "The morality of markets in theory and empirics," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 590-607.
    5. Berggren, Niclas & Bjørnskov, Christian, 2023. "Does globalization suppress social trust?," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 443-458.

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    More about this item

    Keywords

    Markets; Morality; Prosociality; Reciprocity; Kindness; Autarky; Barter; Money;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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