Social and Behavioral Sciences Commons^™

Conscience Accounting: Emotional Dynamics And Social Behavior, Uri Gneezy, Alex Imas, Kristof Madarasz

Kristof Madarasz

We develop a simple dynamic model of decision making in the presence of moral constraints. Norm violations induce a temporal feeling of guilt that depreciates with time. Due to endogenous fluctuations of guilt, people exhibit a dynamic inconsistency in social preferences—a behavior we term conscience accounting. We test the predictions of the model through two experiments in which people first have to make an ethical decision, and subsequently decide whether to donate to charity. We find that those who chose unethically were more likely to donate than those who did not. As predicted, donation rates were higher when the opportunity …

Sellers With Misspecified Models, Kristof Madarasz, Andrea Prat

Kristof Madarasz

Review of Economic Studies, 84 (2), 790-815.

Information Projection: Model And Applications, Kristof Madarasz

Kristof Madarasz