In this sequence, Diego Caleiro introduces and explores a new subfield of economics called “moral economics”.

Moral economics uses the methods of analysis that are traditionally associated with economics and game theory, but from a different perspective and under different assumptions about what matters for agents and what is valuable for them. It also uses different notions of externalities and of utility. Compared to traditional economic agents, the moral economic agents will behave differently, for there are qualitative shifts in the desirability of some forms of trade.

Moral economics also diverges from traditional economics in having a multidimensional notion of value. This causes further detachment between price and market price, because different individuals will assign different subjective values for equal actions. Frequently they will value actions equivalently if taken by themselves or others, in a way that enables more frequent trade, than the type of subjective valuation individuals have in standard microeconomics.