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Mathematical foundations of moral preferences

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 Added by Matjaz Perc
 Publication date 2021
and research's language is English




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One-shot anonymous unselfishness in economic games is commonly explained by social preferences, which assume that people care about the monetary payoffs of others. However, during the last ten years, research has shown that different types of unselfish behaviour, including cooperation, altruism, truth-telling, altruistic punishment, and trustworthiness are in fact better explained by preferences for following ones own personal norms - internal standards about what is right or wrong in a given situation. Beyond better organising various forms of unselfish behaviour, this moral preference hypothesis has recently also been used to increase charitable donations, simply by means of interventions that make the morality of an action salient. Here we review experimental and theoretical work dedicated to this rapidly growing field of research, and in doing so we outline mathematical foundations for moral preferences that can be used in future models to better understand selfless human actions and to adjust policies accordingly. These foundations can also be used by artificial intelligence to better navigate the complex landscape of human morality.



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The use of hypothetical instead of real decision-making incentives remains under debate after decades of economic experiments. Standard incentivized experiments involve substantial monetary costs due to participants earnings and often logistic costs as well. In time preferences experiments, which involve future payments, real payments are particularly problematic. Since immediate rewards frequently have lower transaction costs than delayed rewards in experimental tasks, among other issues, (quasi)hyperbolic functional forms cannot be accurately estimated. What if hypothetical payments provide accurate data which, moreover, avoid transaction cost problems? In this paper, we test whether the use of hypothetical - versus real - payments affects the elicitation of short-term and long-term discounting in a standard multiple price list task. One-out-of-ten participants probabilistic payment schemes are also considered. We analyze data from three studies: a lab experiment in Spain, a well-powered field experiment in Nigeria, and an online extension focused on probabilistic payments. Our results indicate that paid and hypothetical time preferences are mostly the same and, therefore, that hypothetical rewards are a good alternative to real rewards. However, our data suggest that probabilistic payments are not.
186 - Domingos Soares 2013
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