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Altruism and fairness in experimental decisions

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  • Kohler, Stefan

Abstract

Experimental evidence from dictator games and simple choice situations indicates concerns for fairness and social welfare in human decision making. At the same time, models of inequality averse agents fail to explain the experimental data of individuals who reduce their payoff below a fair split in order to maximize social welfare. This paper presents a linear model of altruism and inequality aversion which reconciles inequality aversion with departures from distributional fairness if welfare is thereby gained. It also establishes a unique link between altruism and interest in social welfare in the proposed model.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 80 (2011)
Issue (Month): 1 ()
Pages: 101-109

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Handle: RePEc:eee:jeborg:v:80:y:2011:i:1:p:101-109

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

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Keywords: Behavioral game theory; Efficiency; Inequality aversion; Other-regarding preferences; Social preferences; Welfare;

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Cited by:
  1. Christian Thöni & Simon Gaechter, 2014. "Peer Effects and Social Preferences in Voluntary Cooperation," CESifo Working Paper Series 4741, CESifo Group Munich.
  2. Kohler, Stefan, 2012. "Guilt causes equal or unequal division in alternating-offer bargaining," MPRA Paper 40760, University Library of Munich, Germany.
  3. Kohler, Stefan, 2013. "Inequality aversion causes equal or unequal division in alternating-offer bargaining," MPRA Paper 40764, University Library of Munich, Germany.
  4. Stefan Kohler, 2006. "Inequality Aversion and Stochastic Decision-making: Experimental Evidence from Zimbabwean Villages after Land Reform," Economics Series Working Papers GPRG-WPS-061, University of Oxford, Department of Economics.
  5. Breitmoser, Yves & Tan, Jonathan H.W., 2011. "Ultimata bargaining: generosity without social motives," MPRA Paper 33613, University Library of Munich, Germany.
  6. Aurélie Bonein, 2006. "An empirical study of determinants in decision-making process," Working Papers 06-10, LAMETA, Universtiy of Montpellier, revised Oct 2006.
  7. Pelligra, Vittorio & Stanca, Luca, 2013. "To give or not to give? Equity, efficiency and altruistic behavior in an artefactual field experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 1-9.
  8. Kohler, Stefan, 2012. "Envy can promote more equal division in alternating-offer bargaining," MPRA Paper 40761, University Library of Munich, Germany.
  9. Breitmoser, Yves & Tan, Jonathan H.W., 2013. "Reference dependent altruism in demand bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 127-140.
  10. Stefan Kohler, 2012. "Incomplete Information about Social Preferences Explains Equal Division and Delay in Bargaining," Games, MDPI, Open Access Journal, vol. 3(3), pages 119-137, September.

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