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We address a basic diffculty with incorporating fairness into standard utilitarian choice theories. Standard utilitarian theories evaluate lotteries according to the (weighted) utility over ?nal outcomes and assume in particular that a lottery is never preferred over getting the most preferred...
Persistent link: https://www.econbiz.de/10003909311
Persistent link: https://www.econbiz.de/10001739597
We study a two-stage choice problem, where alternatives are allocations between the decision maker (DM) and a passive recipient. The recipient observes choice behavior in stage two, while stage one choice is unobserved. Choosing selfishly in stage two, in the face of a fairer available...
Persistent link: https://www.econbiz.de/10014213898
Although different approaches and methods have been used to measure inequality aversion, there remains no consensus about its drivers at the individual level. We conducted an experiment on a sample of more than 1800 first-year undergraduate economics and business students in Uruguay to...
Persistent link: https://www.econbiz.de/10014084025
Although different approaches and methods have been used to measure inequality aversion, there remains no consensus about its drivers at the individual level. We conducted an experiment on a sample of more than 1,576 first-year undergraduate economics and business students in Uruguay to...
Persistent link: https://www.econbiz.de/10013250356
We report the results of an online experiment studying preferences for giving and preferences for group-wide redistribution in small (4-person) and large (200-person) groups. We find that the desire to engage in voluntary giving decreases significantly with group size. However, voting for...
Persistent link: https://www.econbiz.de/10013324371
Social preference models were originally constructed to explain two things: why people spend money to affect the earnings of others and why the income of others influences reported happiness. We test these models in a novel experimental situation where participants face a risky decision that...
Persistent link: https://www.econbiz.de/10013112999
We assess the empirical validity of the overall theoretical framework of other-regarding preferences by focusing on those preference axioms that are common to all the prominent theories of outcome-based other-regarding preferences. This common set of preference axioms leads to a testable...
Persistent link: https://www.econbiz.de/10009306937
When individuals choose from whatever alternatives available to them the one that maximizes their utility then it is always desirable that the government provide them with as many alternatives as possible. Individuals, however, do not always choose what is best for them and their mistakes may be...
Persistent link: https://www.econbiz.de/10011505924
Social lotteries are lotteries that are played along with someone else. The experimental literature indicates that risk attitudes depend on how one’s situation in the safe alternative compares to that of a peer. Evaluation of the risky alternative also depends on whether the lottery gives...
Persistent link: https://www.econbiz.de/10011295782