Guilt averse individuals experience a utility loss if they believe they let someone down. In particular, generosity depends on what the donor believes that the recipient expects to receive. In experimental work, several authors have identified a positive correlation between such second-order...

Are humans intuitively cooperative, or do we need to deliberate in order to be generous to others? The Social Heuristics Hypothesis (SHH) proposes that fast instinctive decision making promotes cooperation in social dilemmas. In this paper, we conduct a novel time-pressure experiment to shed...

Spectators act as a third party, and their decisions affect the payoff for other subjects but not for themselves; there is no trade-off between “one's own” and “others'” payoff. This feature has caused spectator design to emerge as tool to measure spectators' inequality preferences as...

The main contribution of this paper lies in applying Adam Smith’s moral theory to explain how some actions become jointly recognized as socially appropriate while others do not, and how these jointly recognized rules affect actual behavior. To illustrate the strength of Smith’s theory, we...