Abstract

People use moral wiggle room to behave selfish. But does a narrow wiggle room necessarily produce better social outcomes? When people disagree on normative goals, economic theories of self-image predict that narrowing the moral wiggle room will make choices not only less selfish but also even more heterogeneous, and thus potentially more conflictive. I test this conjecture experimentally in a modified dictator game with and without moral introspection. My results confirm the theoretical predictions, revealing a large disparity of moral valuations of efficiency vs. equality.

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