Long-term morality effects of behavioral interventions in networks

Abstract In this paper, we develop a dynamic model of moral preferences in repeated public goods games on networks. We incorporate informational nudges and derive conditions for convergence of behavior and optimal targeting of policies. Importantly, the long-term impact of moral nudges on preferences and behavior depends on how preferences evolve. When preferences include a component of persistent intrinsic morality, the effect of a moral nudge dissipates over time. Conversely, if social preferences continuously evolve, influenced by recent periods and present experiences, the potential for long-lasting effects of behavioral interventions becomes more promising. We also discuss heterogeneous adaptation, which improves the model’s predictive power for laboratory public-goods experiments. With the framework constructed in this paper, outcomes in experimental, field and natural experiments can be evaluated to further understand what drives individual decision making.