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Self-esteem, moral capital, and wrongdoing (2008)
| Venue: | Journal of the European Economic Association |
| Citations: | 2 - 0 self |
BibTeX
@ARTICLE{Bó08self-esteem,moral,
author = {Ernesto Dal Bó and Marko Terviö},
title = {Self-esteem, moral capital, and wrongdoing},
journal = {Journal of the European Economic Association},
year = {2008}
}
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Abstract
We present an in…nite-horizon planner-doer model of moral standards, where individuals receive random temptations (such as bribe o¤ers) and must decide which to resist. Individual actions depend both on conscious deliberation and on a type re‡ecting unconscious drives. Temptations yield consumption value, but con…dence in being the type of person who resists temptations yields self-esteem. We identify conditions for individuals to build an introspective reputation for goodness (“moral capital”) and for good actions to lead to a stronger disposition to do good. Bad actions destroy moral capital and lock-in further wrongdoing. Economic shocks that result in higher temptations have long-lasting e¤ects on wrongdoing. We show how optimal deterrence can change under endogenous moral costs and how wrongdoing can be compounded as high temptation activities attract individuals with low moral capital.
Keyphrases
moral capital individual action optimal deterrence bad action con dence introspective reputation nite-horizon planner-doer model good action temptation yield lock-in wrongdoing unconscious drive consumption value long-lasting ect endogenous moral cost high temptation activity low moral capital random temptation economic shock conscious deliberation type re moral standard
