We present a framework that incorporates both moral motivations and fairness considerations into utility. The main idea is that individuals face a preference trade-off between their material individual interest and their desire to follow moral norms. In our model, we assume that moral motivation...

Noncompliance is a quantitatively important phenomenon that significantly affects revenue sources for governments. This phenomenon raises challenging questions about the determinants of tax reporting and about the appropriate design of a tax system. This paper provides specific empirical...

In this paper, we examine labor market favoritism in a unique laboratory experiment design that can shed light on both the private benefits and spillover costs of employer favoritism (or discrimination). Group identity is induced on subjects such that each laboratory "society" consists of eight...

This paper considers the effect of status or relative income on work effort combining experimental evidence from a gift-exchange game with ISSP survey data. We find a consistent negative effect of others' incomes on individual effort in both datasets. The individual's rank in the income...

Cooperation among people who are not related to each other is sustained by the availability of punishment devices which help enforce social norms (Fehr and Gächter, 2002). However, the rationale for costly punishment remains unclear. This paper reports the results of an experiment investigating...

In this paper, we investigate experimentally whether social and anti-social preferences are influenced by the nature of the stakes, i.e. whether the stakes are real or hypothetical. Our experiment consists of a control treatment in which incentives are real and a experimental treatment where...