We advance the thesis that the method of experimental economics can make significant contributions to normative, as opposed to descriptive, business ethics. We contend that there are two basic ways in which experimental economics may make this contribution, and we exemplify these ways by pointing to experimental support of social contract theory as rational foundation for business ethics. These two ways are: (1) adding psychological realism; and (2) testing some quasi-empirical assumptions present in normative theory. In order to make good (...) our methodological claim, we first describe the methodological rules of experimental economics, distinguishing this method from other behavioral business ethics approaches. We also contemplate the possible objection that empirical methods cannot bear on normative ethics because there is no way of bridging the gap between descriptive theory (how people behave) and normative theory (how people ought to behave). (shrink)

The social contract approach to the study if institutions aims at providing a solution to the problem of compliance with rational agreements in situations characterized by a conflict between individual rationality and social optimality. After a short discussion of some attempts to deal with this problem from a rational choice perspective, we focus on John Rawls's idea of 'sense of justice' and its application to the explanation of the stability of a well-ordered society. We show how the relevant features of (...) Rawls's theory can be captured by a behavioral game theory model of beliefs dependent dispositions to comply, and we present the results of two experimental studies that provide support to the theory. (shrink)

Business Ethics, the Environment &Responsibility, Volume 31, Issue 3, Page 875-887, July 2022.

This paper contributes to the promotion of multidisciplinary research on ethical consumerism by providing experimental evidence on consumer's willingness to reward sellers by paying higher wages to their workers. We analyze repeated interactions occurring between workers, sellers, and consumers within the framework of an experimental market. By successfully performing a task, workers allow sellers to offer a good through a market. Sellers set the price of goods and decide the wages of workers. Consumers enter the market sequentially and decide whether (...) to accept one of the offers or to leave the market. Our data show that, especially in the first periods of the experiment, some sellers opt to pay high wages to their workers. However, this behavior is not rewarded by consumers, whose purchasing choices are almost exclusively driven by self‐interest. In our interpretation, the connection between workers and sellers that connotes our experimental design, with workers who allow sellers to enter the market, may induce consumers to believe that eventual sacrifices for paying high wages to workers must be entirely on sellers. Our result suggests that the more salient is made the importance of some stakeholders in allowing the firm's activity, the fewer consumers' may be willing to sacrifice their monetary payoff to improve these stakeholders' condition. (shrink)

Lorenzo Sacconi and his coauthors have put forward the hypothesis that impartial agreements on distributive rules may generate a conditional preference for conformity. The observable effect of this preference would be compliance with fair distributive rules chosen behind a veil of ignorance, even in the absence of external coercion. This paper uses a Dictator Game with production and taking option to compare two ways in which the device of the veil of ignorance may be thought to generate a motivation for, (...) and compliance with a fair distributive rule: individually-as a thought experiment that should work as a moral cue- and collectively-as an actual process of agreement among subjects. The main result is that actual agreement proves to be necessary for agents to be led towards a fair distributive principle and to generate a significant amount of compliance in absence of external authority. This conclusion vindicates the role of actual agreements in generating motivational power in correspondence with fair distributive rules. (shrink)