CeDEx workshop - Urs Fischbacher (University of Konstanz)

The economics of the Knobe effect

Abstract

A series of studies in experimental philosophy have revealed that people blame others for foreseen negative side effects but do not praise them for foreseen positive ones. In order to challenge this effect, called Knobe effect, we develop a laboratory experiment using monetary incentives. In a game-theoretic framework we formalize the two vignettes in a neutral way, which means that we abstain from the use of any specific language terms. Furthermore, we can easily control and vary various variables such as economic status among the agents and the size of the side effects.

We can confirm the Knobe effect in the laboratory if the producer of the side effect is in an advantageous position and the positive side effect is small. However, the Knobe effect vanishes if the producer of the side effect is in a disadvantageous position The Knobe effect is even reversed in a setting with large positive side effects.