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An experimental study on individual choice, social welfare, and social preferences

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Author Info

  • Traub, Stefan
  • Seidl, Christian
  • Schmidt, Ulrich

Abstract

We experimentally study subjects' compliance with dominance relationships of income distributions in a ranking task. The experiment consisted of four different treatments: Lottery, individual choice, social preferences, and social planner. Our results suggest that people's risk attitudes do not adequately reflect their inequality attitudes. Uninvolved social planners exhibit randomization preferences, while self-interested social planners are generally more inequality averse and try to avoid extreme outcomes.

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File URL: http://www.sciencedirect.com/science/article/B6V64-4SNNT8J-1/2/f5a8cda998308241a53ef83d553310c2
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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 53 (2009)
Issue (Month): 4 (May)
Pages: 385-400

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Handle: RePEc:eee:eecrev:v:53:y:2009:i:4:p:385-400

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Web page: http://www.elsevier.com/locate/eer

Related research

Keywords: Inequality Risk Social preferences Procedural fairness;

References

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Citations

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Cited by:
  1. Fabian Paetzel & Rupert Sausgruber & Stefan Traub, 2014. "Social Preferences and Voting on Reform: An Experimental Study," Department of Economics Working Papers wuwp172, Vienna University of Economics, Department of Economics.
  2. Balafoutas, Loukas & Kocher, Martin G. & Putterman, Louis & Sutter, Matthias, 2010. "Equality, Equity and Incentives: An Experiment," IZA Discussion Papers 5204, Institute for the Study of Labor (IZA).
  3. Bernhard Kittel & Wolfgang Luhan, 2013. "Decision making in networks: an experiment on structure effects in a group dictator game," Social Choice and Welfare, Springer, vol. 40(1), pages 141-154, January.
  4. Tim Krieger & Stefan Traub, 2008. "Back to Bismarck? Shifting Preferences for Intragenerational Redistribution in OECD Pension Systems," Working Papers CIE 13, University of Paderborn, CIE Center for International Economics.
  5. John Hey & Carmen Pasca, . "Inferring Social Preferences over Income Distributions through Axioms," Discussion Papers 09/18, Department of Economics, University of York.
  6. Sabrina Teyssier, 2009. "Inequity and Risk Aversion in Sequential Public Good Games," Post-Print halshs-00422669, HAL.
  7. Yoram Amiel & Michele Bernasconi & Michele Bernasconi & Frank A Cowell & Valentino Dardanoni & Valentino Dardanoni, 2013. "Do We Value Mobility?," STICERD - Public Economics Programme Discussion Papers 17, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  8. Stefan Trautmann, 2010. "Individual fairness in Harsanyi’s utilitarianism: operationalizing all-inclusive utility," Theory and Decision, Springer, vol. 68(4), pages 405-415, April.
  9. Jeremiah Hurley & Neil Buckley & Katherine Cuff & Mita Giacomini & David Cameron, 2011. "Judgments regarding the fair division of goods: the impact of verbal versus quantitative descriptions of alternative divisions," Social Choice and Welfare, Springer, vol. 37(2), pages 341-372, July.
  10. Tim Krieger & Stefan Traub, 2008. "Back to Bismarck? Shifting Preferences for Intragenerational Redistribution in OECD Pension Systems," Working Papers 13, University of Paderborn, CIE Center for International Economics.

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