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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

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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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Publisher 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

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Related research
Keywords: Inequality Risk Social preferences Procedural fairness;

Cited by:
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  1. John Hey & Carmen Pasca, . "Inferring Social Preferences over Income Distributions through Axioms," Discussion Papers 09/18, Department of Economics, University of York. [Downloadable!]
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This page was last updated on 2009-12-3.


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