Morals Matter in Economic Games

Abstract

Contrary to predictions from Expected Utility Theory and Game Theory, when making economic decisions in interpersonal situations, people take the interest of others into account and express various forms of solidarity, even in one-shot interactions with anonymous strangers. Research in other-regarding behavior is dominated by behavioral economical and evolutionary biological approaches. Psychological theory building, which addresses mental processes underlying other-regarding behavior, is rare. Based on Relational Models Theory (RMT, [1]) and Relationship Regulation Theory (RRT, [2]) it is proposed that moral motives influence individuals' decision behavior in interpersonal situations via conscious and unconscious (automatic) processes. To test our propositions we developed the 'Dyadic Solidarity Game' and its solitary equivalent, the 'Self-Insurance Game'. Four experiments, in which the moral motives "Unity" and "Proportionality" were manipulated, support the propositions made. First, it was shown that consciously activated moral motives (via framing of the overall goal of the experiment) and unconsciously activated moral motives (via subliminal priming) influence other-regarding behavior. Second, this influence was only found in interpersonal, not in solitary situations. Third, by combining the analyses of the two experimental games the extent to which participants apply the Golden Rule ("treat others how you wish to be treated") could be established. Individuals with a "Unity" motive treated others like themselves, whereas individuals with a "Proportionality" motive gave others less then they gave themselves. The four experiments not only support the assumption that morals matter in economic games, they also deliver new insights in how morals matter in economic decision making.

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