Of Morals, Markets and Mice: A Comment on Falk and Szech

8 Pages Posted: 9 May 2014

See all articles by Friedrich Breyer

Friedrich Breyer

University of Konstanz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Joachim Weimann

Otto-von-Guericke-Universität Magdeburg - Institute of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: April 8, 2014

Abstract

A recent experimental study by Falk and Szech (Science, 2013) concludes that "markets erode moral values". If this were true, economists, who have emphasized the efficiency enhancing effects of markets for centuries, would have to reconsider their judgments fundamentally. This would be no less than a revolution in normative economics. In this note we demonstrate that the claim made by Falk and Szech is unfounded and that their experimental results can be (and should be) interpreted in exactly the opposite way.

JEL Classification: D010, D030, D630

Suggested Citation

Breyer, Friedrich and Weimann, Joachim, Of Morals, Markets and Mice: A Comment on Falk and Szech (April 8, 2014). CESifo Working Paper Series No. 4745. Available at SSRN: https://ssrn.com/abstract=2434462

Friedrich Breyer (Contact Author)

University of Konstanz - Department of Economics ( email )

Fachbereich Wirtschaftswissenschaften Fach D-135
D-78457 Konstanz
Germany
+49 (0)75 31/88-25 68 (Phone)
+49 (0)75 31/88-41 35 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Joachim Weimann

Otto-von-Guericke-Universität Magdeburg - Institute of Economics and Business Administration ( email )

Universitaetsplatz 2
Magdeburg, 39016
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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