When actions generate negative externalities for third parties, incentives exist to pass these
“morally costly” decisions to others. In laboratory experiments, we investigate how market
interaction affects allocations when the right to divide a sum of money between oneself and
a passive recipient is commoditized. Allocation to recipients is reduced by more than half
when determined by subjects who purchase or keep the right to make the division as
compared to a control where subjects are directly assigned the right. Sellers report accurate …