Testing and Modeling Fairness Motives
AbstractThe advent of laboratory experiments in economics over the last few decades has produced an enormous literature devoted to describing, testing and modeling economic and social behavior. Measured by publications and citations, the development of social preference models to capture decisions motivated by fairness and other social criteria, is one of the success stories in this literature. But with this success, and maybe even because of it, controversies have arisen about what the models can and cannot do. In this note, we comment on some of these debates. Our main theme is that descriptive models of behavior should be judged with respect to their usefulness. This is often neglected, partly because there are no accepted measures and tests for the usefulness of a model, while standard procedures to test whether a model is true are readily available. A model that does not capture a 'grain of truth' is unlikely to be useful; however, the relationship is not monotonic in that a 'truer' model is not necessarily a more useful model.
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Bibliographic InfoArticle provided by Frankfurt School Verlag, Frankfurt School of Finance & Management in its journal Rationality, Markets and Morals.
Volume (Year): 0 (2009)
Issue (Month): 13 (November)
experimental economics; fairness; behavioral economics; methodology; usefulness;
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- Gary E. Bolton & Ben Greiner & Axel Ockenfels, 2009.
"Engineering Trust - Reciprocity in the Production of Reputation Information,"
2009-02, School of Economics, The University of New South Wales.
- Gary Bolton & Ben Greiner & Axel Ockenfels, 2013. "Engineering Trust: Reciprocity in the Production of Reputation Information," Management Science, INFORMS, vol. 59(2), pages 265-285, January.
- Gary Bolton & Ben Greiner & Axel Ockenfels, 2009. "Engineering Trust - Reciprocity in the Production of Reputation Information," Working Paper Series in Economics 42, University of Cologne, Department of Economics, revised 22 Jan 2011.
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