Morals in multi-unit markets

old_uid20119
titleMorals in multi-unit markets
start_date2022/03/04
schedule15h30-18h
onlineno
summaryWe examine how the erosion of norms and norm compliance in markets depends on the market power of individual traders. Previously studied single-unit markets provide market power to individual traders by de-activating the roles of two forces: (i) the replacement logic, whereby immoral trading is justified by the belief that others would trade otherwise; (ii) market selection, by which the least moral trader determines quantities. In an experiment, we compare single-unit to (more common) multi-unit markets which may activate these forces. We find that multi-unit markets result in partial norm erosion; Moreover, in contrast to single-unit markets, they lead to a full erosion of norm compliance. The replacement logic is the main mechanism driving this finding.
oncancelNouveau -
responsiblesPalminteri