Working Paper

A Little Good is Good Enough: Ethical Consumption, Cheap Excuses, and Moral Self-Licensing

Jannis Engel, Nora Szech
CESifo, Munich, 2017

CESifo Working Paper No. 6434

We explore the role of cheap excuses in product choice. If a product improves upon one ethically relevant dimension, agents may care less about other, completely independent ethical facets of the product. This ‘static moral self-licensing’ would extend the logic of the well studied moral self-licensing over time. Our data document that static moral self-licensing exists. Furthermore, effects spill over to later, unrelated but ethically relevant contexts. Thus, static moral self-licensing and moral self-licensing over time amplify each other. Outsiders, though incentivized for correct estimates, are completely oblivious to effects of moral self-licensing, both, static and over time.

CESifo Category
Behavioural Economics
Resources and Environment
Keywords: moral self-licensing, moral spillovers, cheap excuses, outsider beliefs, moral personality, homo moralis, preference module
JEL Classification: D030, D840