Impartial Decision Makers and other Third Parties in Moral and Social Dilemmas. An Experimental Analysis

The thesis answers several questions concerning how people behave in an economic context if behavioral norms and rules are not obvious. In particular, it is investigated how subjects behave if other people in the role of third parties are involved or if the subjects themselves have the role of third parties. The main findings are that people value fair and efficient processes and, if they have the chance to be responsible for the outcomes of the process, they are happy to contribute to it. People are willing to forego own earnings for “saving”, “rewarding”, or “punishing” strangers even if this does not lead to potential future monetary gains for themselves. This behavior is correctly anticipated by others and prompts them to behave according to the desired norms. Whether in the role of impartial authorities or in the shoes of subordinates, people are happy to use communication to share their normative views with others even if they do not expect to meet again. And, apparently, this communication can influence the behavior of others in an efficient way.