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The value of decision-making power in social decisions

Author

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  • Hausfeld, Jan
  • Fischbacher, Urs
  • Knoch, Daria

Abstract

People differ in whether they like to be in control of a decision or whether they would happily delegate a decision. We explore the heterogeneity and the underlying factors of the participants’ values of decision-making power in an allocation choice between a fair and an unfair option. This allocation decision affects the outcomes of the deciding person and three other people in different ways. We find that people differ in their preference for keeping this social decision, and more than 85% never pay for delegating the choice. The value for keeping the decision-making power is affected by the strength, but not the direction of social preferences, and relates to the preference for keeping a useless decision, i.e. selecting the winning number of a lottery. The value of decision-making power is reflected in response times and both eye- and mouse-tracking.

Suggested Citation

  • Hausfeld, Jan & Fischbacher, Urs & Knoch, Daria, 2020. "The value of decision-making power in social decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 898-912.
    • Handle: RePEc:eee:jeborg:v:177:y:2020:i:c:p:898-912
    DOI: 10.1016/j.jebo.2020.06.018
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    References listed on IDEAS

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    Cited by:

    1. Regina Anselm & Deepti Bhatia & Urs Fischbacher & Jan Hausfeld, 2022. "Blame and Praise: Responsibility Attribution Patterns in Decision Chains," TWI Research Paper Series 126, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    2. Sookie Xue Zhang & Ralph-Christopher Bayer, 2023. "Delegation based on cheap talk," Theory and Decision, Springer, vol. 94(2), pages 333-361, February.
    3. Fischbacher, Urs & Hausfeld, Jan & Renerte, Baiba, 2022. "Strategic incentives undermine gaze as a signal of prosocial motives," Games and Economic Behavior, Elsevier, vol. 136(C), pages 63-91.

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    More about this item

    Keywords

    Delegation; Social preferences; Experiments; Eye-tracking; Mouse-tracking;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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