In this study, we develop a framework to incorporate social preferences such as outcome-based distributional preferences, reciprocity, and image concerns into strategic interactions. We introduce a new equilibrium concept that is an extended version of Nash equilibria and study the one-shot...

We experimentally investigate whether people generally perceive inheritance as effort-induced or luck-induced. By randomly matched two strangers in a lab setting, we test whether the sources of opportunity handed down from the ‘testator’ subjects determines later redistributive decisions...

We consider social decisions under uncertainty. We show that the ex ante social preference order satisfies a Pareto axiom with respect to ex ante individual preferences, along with an axiom of Statewise Dominance, if and only if all agents admit subjective expected utility (SEU) representations,...

We study the random assignment of indivisible objects among a set of agents with strict preferences. We show that there exists no mechanism which is unanimous, strategy-proof and envy-free. Weakening the first requirement to q-unanimity - i.e., when every agent ranks a different object at the...

This paper examines how perceived importance of family background affect distributional pref-erences using two large-scale survey experiments. In the first experiment, we randomly inform respondents about the relationship between parental income and economic success later in life, which renders...

We extend the literature structurally estimating social preferences by accounting for the desire to adhere to social norms. Our representative agent is strongly motivated by norms and failing to account for this causes us to overestimate how much agents care about helping those who are worse...

The constant elasticity of substitution (CES) function is widely used to model distributional preferences in modified dictator games. However, it has been pointed out that its parameter interpretations are inconsistent and problematic in applications. We constructed a model to address this issue...

Using a new experimental design, we compare how subjects form beliefs in an investor-client setup under varying degrees of liability. Our results reflect the importance of social preferences when making investment decisions for others. We show that when investors have no liability, those with...