This dissertation sheds more light on ethics in economic decision-making. Over the course of nine experiments, I studied (a) when people adhere to ethical standards like the do-no-harm principle,... Show moreThis dissertation sheds more light on ethics in economic decision-making. Over the course of nine experiments, I studied (a) when people adhere to ethical standards like the do-no-harm principle, and (b) how people respond to situations in which ethical standards are violated by studying not only punishing behavior but also compensation behavior. I show that when people know that by furthering their self-interest they harm another person (either by taking from or by allocating a loss to the other person), people become reluctant to benefit themselves. In addition, I show that when people observe a situation of distributive injustice, they are not only willing to give up money to punish persons causing this injustice but also to compensate persons suffering injustice. Empathic concern moderates the preference for punishment and compensation. Theoretical implications of these results are discussed in te rms of altruism, empathy, and motives of self-interest and fairness. Show less
