Advanced Search
MyIDEAS: Login to save this article or follow this journal

Individual sense of fairness: an experimental study

Contents:

Author Info

  • Edi Karni

    ()

  • Tim Salmon

    ()

  • Barry Sopher

    ()

Abstract

This paper presents an experimental test of the theory of individual sense of fairness of Karni and Safra (2000). According to this theory individuals' choice among random procedures designed to allocate indivisible goods is motivated, in part, by concern for fairness. The experimental study is intended to test this hypothesis. In the experiments, the subjects are asked to play a three person dictator game. The dictator, player A, is presented with a feasible set of lotteries that assign to each player a probability of winning a $15 prize. Player A is asked to choose a lottery from the feasible set (i.e. a point along a chord in the two-dimensional probability simplex) to be used in actually allocating the prize. The feasible set is constructed such that by giving up some of his own probability of winning the prize, player A can make the overall lottery more ``fair''. If these subjects have no concern for fairness, they will choose the lottery that assigns them the highest probability of winning. However, if they have preference for fairness, they may choose a lottery farther down the chord thereby trading off some of their own chance of winning for a fairer allocation procedure. The results indicate strongly bi-modal outcomes with around half of the subjects keeping the initial allocation which yields the highest probability of winning for the dictator while the other half chooses very close to the ``perfect equity'' point along the chord. Several other properties of the subjects' preferences are also checked such as whether or not their preferences are symmetric with respect to the other players, the impact of endowment effects on preferences for fairness and the notion of fairness that underlies their choices.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1007/s10683-007-9165-1
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 11 (2008)
Issue (Month): 2 (June)
Pages: 174-189

as in new window
Handle: RePEc:kap:expeco:v:11:y:2008:i:2:p:174-189

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102888

Related research

Keywords: Dictator game; Preferences for fairness; Choise under uncertainty; C91; D63;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Romer, Paul M., 2000. "Thinking and Feeling," Research Papers 1618, Stanford University, Graduate School of Business.
  2. Karni, Edi & Safra, Zvi, 2002. "Intensity of the Sense of Fairness: Measurement and Behavioral Characterization," Journal of Economic Theory, Elsevier, vol. 105(2), pages 318-337, August.
  3. Smith, Vernon L, 1976. "Experimental Economics: Induced Value Theory," American Economic Review, American Economic Association, vol. 66(2), pages 274-79, May.
  4. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November.
  5. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May.
  6. Ray Fisman & Shachar Kariv & Daniel Markovits, 2005. "Pareto Damaging Behaviors," Levine's Bibliography 784828000000000081, UCLA Department of Economics.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:kap:expeco:v:11:y:2008:i:2:p:174-189. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.