We investigate how group identity affects belief updating about moral norms. Using a Belief Updating task, we found that individuals follow a cautious version of Bayesian updating. Group identity itself does not directly affect belief updating. However, when given an information signal about the...

A donation may have ambiguous costs or ambiguous benefits. In a laboratory experiment, we show that individuals use this ambiguity strategically as a moral wiggle room to behave less generously without feeling guilty. Such excuse-driven behavior is more pronounced when the costs of a donation...

We theoretically show that agents with loss-averse preferences facing a decision to receive a bad financial payoff if they report honestly or to receive a better financial payoff if they report dishonestly are more likely to lie to avoid receiving the low payoff the lower the ex-ante probability...

A donation may have ambiguous costs or ambiguous benefits. In a laboratory experiment, we show that individuals use this ambiguity strategically as a moral wiggle room to behave less generously without feeling guilty. Such excuse-driven behavior is more pronounced when the costs of a donation -...

We theoretically show that loss-averse agents are more likely to lie to avoid receiving a low payoff after a random draw, the lower the ex-ante probability of this bad outcome. The ex-ante expected payoff increases as the bad outcome becomes less likely, and hence the greater is the loss avoided...

We theoretically show that loss-averse agents are more likely to lie to avoid receiving a low payoff after a random draw, the lower the ex-ante probability of this bad outcome. The ex-ante expected payoff increases as the bad outcome becomes less likely, and hence the greater is the loss avoided...