Behavioral economics shows that people act more morally than the homo economicus model suggests. People are more trustworthy and behave more fairly than many people think. Nevertheless, morality regularly comes into conflict with economic interests, but these conflicts can often be resolved with the help of business ethics.
About the topic
Entrepreneurial profit-seeking and the legitimate interests of society are not always in harmony. However, the conflicts can often be overcome in a constructive way, for example by the state intervening in a regulatory manner (regulatory ethics), by companies assuming responsibility (business ethics) and investing in trust. Or by individuals behaving more morally (individual morality). Typical topics of business ethics are: In the social market economy, the state sets the framework, e.g., for consumer protection, supply chains, and environmental protection; companies maintain their own compliance and corporate social responsibility departments. Individuals volunteer in a variety of ways in society - keyword civic engagement and strengthen social capital. Together, these ways ensure greater prosperity, growth and life satisfaction. Behavioral economics has shown in experiments, among other things, that immoral behavior such as corruption, moonlighting and white-collar crime is a form of corruption.
IW-Trends No. 4 10. January 2026 Jennifer Potthoff / Rebecca Gabel
Life Satisfaction in Germany: Trends, Influencing Factors and Political Relevance
Despite their country’s multiple crises, Germans' subjective well-being remains overall buoyant and is currently reaching historic highs similar to those of the 2010s.
IW-Policy Paper No. 12 6. November 2025 Barbara Engels / Jennifer Potthoff
Social Media, Markets and Minors: A Behavioral Ethics Perspective
Social media has become a central infrastructure of adolescence, offering benefits such as social connection, informal learning, creative expression, and low-cost entrepreneurial opportunities, while simultaneously posing risks including depression, body image concerns, and opaque commercial persuasion.
Anti-Foreign Bias in Germany: A Behavioural Economic Analysis of ist Relevance in Structural Change
While economists never cease to emphasise the overall prosperity gains for society as a whole that result from free trade and globalisation, critical attitudes towards globalisation and support for protectionist policies continue to grow in many Western countries.
The German Economic Institute (IW) and Frontier Economics are pleased to invite you to a rapporteur & stakeholder workshop on the Industrial Accelerator Act (IAA) in Brussels.
Event
28. September 2026
Sandra Parthie / Alexander Radunz
Online-Veranstaltungsreihe „Von Brüssel nach Berlin”: Regionalentwicklung und Industriepolitik
Wir laden Sie herzlich zu einer weiteren Online-Veranstaltung unserer Veranstaltungsreihe „Von Brüssel nach Berlin“ ein. Mit ihr wollen wir in loser Folge Themen aus der europäischen in die deutsche Hauptstadt tragen.
Making Apprenticeships a Success: From Marketing to Hiring
Paula Risius / Dirk Werner / Philip Herzer / Fritz Orange / Regina Flake / Franziska Arndt / Yasin Küçükyavuz / Edgar Schmitz
In-company vocational training is a key factor in securing skilled labour. The first step in investing in future employees is to approach and recruit new apprentices. For many companies, filling the apprenticeship positions they offer is a challenge.
GTIPA Perspectives: Making AI Policy to Drive Innovation
Vera Demary
Germany’s federal structure leads to a diverse landscape of AI policies across the country. While
the EU AI Act establishes a general framework for AI policy throughout the continent, Germany’s
federal government is responsible for national AI policies.
More and more companies in Europe are using artificial intelligence (AI) technologies. In 2025, one in five companies in the EU with 10 employees or more used at least one major AI technology, up from 8% in 2023 (Eurostat, 2026a).
European Minimum Wage Directive and Strengthening Collective Bargaining Coverage
Hagen Lesch / Lennart Eckle / Sandra Vogel
The EU Minimum Wage Directive recommends that EU Member States achieve a collective bargaining coverage of 80 per cent to ensure adequate minimum wages.
Your search returned an incorrect status. You may have selected too many filters. You can jump back to your previous selection to adjust your search.
Content element with id 9713
IW-Newsletter
Subscribe to our newsletters to receive updates on the latest IW publications. Sign up here to stay informed.
This website uses necessary cookies to ensure the operation of the website. You can allow or decline tracking. If you allow tracking, Matomo is used with cookies. You can find detailed information about the use of cookies in our privacy policy.
Warning: You are using an outdated browser!
Please switch to a modern browser (e.g. Google Chrome, Firefox or Microsoft Edge) in order to enjoy the best user experience.
German Economic Institute (IW) 
