Working Paper

A Note on Moral Licensing and Foot-In-The-Door Effect

Alistair Ulph, Luca Panzone, Denis Hilton
CESifo, Munich, 2019

CESifo Working Paper No. 7857

Literature in economics and psychology on moral behaviour explores the contexts in which people act in ways that are consistent or inconsistent with their past actions. Such inconsistencies appear to violate economists' assumption of rational consumer behaviour. In this note we show that a simple model of rational (utility-maximising) consumer behaviour, in both static and dynamic forms, can explain both consistent and inconsistent behaviour.

CESifo Category
Resources and Environment
Behavioural Economics
Keywords: behavioural consistency, moral self-regulation, moral licensing, consumer behavior, sustainable consumption
JEL Classification: D110, H410, M310, Q560, Q580