A theory of moral authority Moral choices under network externalitites Early draft July 2, 2024., please do not circulate; available as working paper at SSRN

Abstract

What determines which behavior is considered morally ideal? We present a rational actor model where people's choices determine the contents of moral ideals. The model shows that, if choices reflect a trade-off between cost and the feeling of guilt, social learning cannot sustain moral ideals that mandate privately costly behavior. Persons with the ability to affect what others consider moral-moral authorities-are needed to sustain privately costly moral ideals. We apply the model to analyze what limits the influence of moral authorities' and what determines the enforcement costs of laws.

Keywords: Morality, moral authority, moral unraveling, moral network externalities, moral choices, moral community JEL classification: D02, D10, N30, D71, Z12

JEL Classification: D02, D10, N30, D71, Z12