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Fairness and Competence in Democratic Decisions

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  • Oberholzer-Gee, Felix
  • Bohnet, Iris
  • Frey, Bruno S

Abstract

The price system is generally thought to be the epitome of efficiency. In some cases, however, lotteries are preferred to the market as a social decision-making system for reasons of fairness. As recent research has shown, neither procedure is always well accepted among the general population. The authors analyze the social acceptability of both mechanisms and apply their framework to the allocation of social burdens, namely the sighting of nuclear waste facilities. Lotteries are only acceptable if they are applied to a set of efficient options. The market is accepted if the production of fairness precedes the use of prices. Copyright 1997 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 91 (1997)
Issue (Month): 1 (April)
Pages: 89-105

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Handle: RePEc:kap:pubcho:v:91:y:1997:i:1:p:89-105

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Schleich, Joachim & Dütschke, Elisabeth & Schwirplies, Claudia & Ziegler, Andreas, 2014. "Citizens' perceptions of justice in international climate policy: Empirical insights from China, Germany and the US," Working Papers "Sustainability and Innovation" S2/2014, Fraunhofer Institute for Systems and Innovation Research (ISI).
  2. Gary E. Bolton & Axel Ockenfels, 2004. "The Behavioral Tradeoff between Efficiency and Equity when a Majority Rules," Papers on Strategic Interaction 2003-12, Max Planck Institute of Economics, Strategic Interaction Group.
  3. Sondak, Harris & Tyler, Tom R., 2007. "How does procedural justice shape the desirability of markets?," Journal of Economic Psychology, Elsevier, vol. 28(1), pages 79-92, January.
  4. Hong, Kessely & Bohnet, Iris, 2007. "Status and distrust: The relevance of inequality and betrayal aversion," Journal of Economic Psychology, Elsevier, vol. 28(2), pages 197-213, April.
  5. Olof Johansson-Stenman & James Konow, 2010. "Fair Air: Distributive Justice and Environmental Economics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(2), pages 147-166, June.
  6. Gary E. Bolton & Jordi Brandts & Axel Ockenfels, 2000. "Fair Procedures. Evidence from Games Involving Lotteries," UFAE and IAE Working Papers 483.01, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  7. Cooter, Robert & Garoupa, Nuno, 2000. "The Virtuous Circle of Distrust: A Mechanism to Deter Bribes and Other Cooperative Crimes," Berkeley Olin Program in Law & Economics, Working Paper Series qt83c0k3wc, Berkeley Olin Program in Law & Economics.
  8. repec:qut:qubewp:wp014 is not listed on IDEAS
  9. McCann, Laura M.J. & Hafdahl, Adam, 2003. "Agency Perceptions Of Alternative Salinity Policies: The Role Of Fairness," 2003 Annual meeting, July 27-30, Montreal, Canada 22097, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Timo Tammi, 2011. "Contractual preferences and moral biases: social identity and procedural fairness in the exclusion game experiment," Constitutional Political Economy, Springer, vol. 22(4), pages 373-397, December.

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