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Equality preference in the claims problem: a questionnaire study of cuts in earnings and pensions

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  • Kristof Bosmans

    ()

  • Erik Schokkaert

    ()

Abstract

Many distributional conflicts are characterized by the presence of acquired rights. The basic structure of these conflicts is that of the so-called claims problem, in which an amount of money has to be divided among individuals with differing claims and the total amount available falls short of the sum of the claims. We describe the results of a questionnaire in which Belgian and German students were confronted with nine claims problems. In the "Firm" version, respondents had to divide revenue among the owners of a firm who contribute to the activities of the firm in different degrees. In the "Pensions" version, they had to divide tax money among pensioners who have paid different contributions during their active career. Responses in the Pensions version were more egalitarian than in the Firm version. For both versions, the proportional rule performs very well in describing the choices of the respondents. Other prominent rules in particular the constrained equal awards and constrained equal losses rules fail to capture some basic intuitions. A substantial part of the respondents tend to become more progressive as the amount to be distributed decreases other things equal, and tend to become more progressive as the inequality in the distribution of claims becomes more unequal other things equal. All of these conclusions are robust with respect to the difference in home-country of the respondents.

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File URL: http://hdl.handle.net/10.1007/s00355-009-0378-4
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Bibliographic Info

Article provided by Springer in its journal Social Choice and Welfare.

Volume (Year): 33 (2009)
Issue (Month): 4 (November)
Pages: 533-557

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Handle: RePEc:spr:sochwe:v:33:y:2009:i:4:p:533-557

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References

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  1. William Thomson, 2012. "Lorenz rankings of rules for the adjudication of conflicting claims," Economic Theory, Springer, vol. 50(3), pages 547-569, August.
  2. Kristof Bosmans & Luc Lauwers, 2007. "Lorenz comparisons of nine rules for the adjudication of conflicting claims," Center for Economic Studies - Discussion papers ces0705, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  3. Moreno-Ternero, Juan D. & Villar, Antonio, 2004. "The Talmud rule and the securement of agents' awards," Mathematical Social Sciences, Elsevier, vol. 47(2), pages 245-257, March.
  4. MORENO-TERNERO, Juan D. & VILLAR, Antonio, . "On the relative equitability of a family of taxation rules," CORE Discussion Papers RP -1899, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. José Alcalde & María Marco & José Silva, 2008. "The minimal overlap rule revisited," Social Choice and Welfare, Springer, vol. 31(1), pages 109-128, June.
  6. JU, Biung-Ghi & MORENO-TERNERO, Juan D., . "On the equivalence between progressive taxation and inequality reduction," CORE Discussion Papers RP -2050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Tito Boeri & Axel Boersch-Supan & Guido Tabellini, 2002. "Pension Reforms and the Opinions of European Citizens," American Economic Review, American Economic Association, vol. 92(2), pages 396-401, May.
  8. Chun, Youngsub & Thomson, William, 2005. "Convergence under replication of rules to adjudicate conflicting claims," Games and Economic Behavior, Elsevier, vol. 50(2), pages 129-142, February.
  9. Carmen Herrero & Juan D. Moreno-Ternero & Giovanni Ponti, 2009. "On the Adjudication of Conflicting Claims: An Experimental Study," Working Papers 09.10, Universidad Pablo de Olavide, Department of Economics.
  10. Lars Peter Østerdal & Jens Leth Hougaard, 2004. "Inequality Preserving Rationing," Discussion Papers 04-23, University of Copenhagen. Department of Economics.
  11. Diego Dominguez & William Thomson, 2006. "A new solution to the problem of adjudicating conflicting claims," Economic Theory, Springer, vol. 28(2), pages 283-307, 06.
  12. Erik Schokkaert, 1999. "M. Tout-le-monde est "post-welfariste". Opinions sur la justice redistributive," Revue Économique, Programme National Persée, vol. 50(4), pages 811-831.
  13. Moulin, Herve, 2001. "Axiomatic Cost and Surplis-Sharing," Working Papers 2001-06, Rice University, Department of Economics.
  14. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
  15. Tito Boeri & Axel Börsch-Supan & Guido Tabellini, 2001. "Would you like to shrink the welfare state? A survey of European citizens," Economic Policy, CEPR & CES & MSH, vol. 16(32), pages 7-50, 04.
  16. Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August.
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Citations

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Cited by:
  1. Corazzini, Luca & Esposito, Lucio & Majorano, Francesca, 2012. "Reign in hell or serve in heaven? A cross-country journey into the relative vs absolute perceptions of wellbeing," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 715-730.
  2. Kristof Bosmans & Luc Lauwers, 2007. "Lorenz comparisons of nine rules for the adjudication of conflicting claims," Center for Economic Studies - Discussion papers ces0705, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  3. HERRERO, Carmen & MORENO-TERNERO, Juan D. & PONTI, Giovanni, . "On the adjudication of conflicting claims: an experimental study," CORE Discussion Papers RP -2264, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. William Thomson, 2013. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: an update," RCER Working Papers 578, University of Rochester - Center for Economic Research (RCER).
  5. Hennig-Schmidt, Heike & Irlenbusch, Bernd & Rilke, Rainer Michael & Walkowitz, Gari, 2013. "Self-Serving Use of Equity Rules in Bargaining with Asymmetric Outside Options," IZA Discussion Papers 7625, Institute for the Study of Labor (IZA).
  6. Jeremiah Hurley & Neil Buckley & Katherine Cuff & Mita Giacomini & David Cameron, 2011. "Judgments regarding the fair division of goods: the impact of verbal versus quantitative descriptions of alternative divisions," Social Choice and Welfare, Springer, vol. 37(2), pages 341-372, July.
  7. Ansink, Erik, 2011. "The Arctic scramble: Introducing claims in a contest model," European Journal of Political Economy, Elsevier, vol. 27(4), pages 693-707.
  8. Erik Ansink & Carmen Marchiori, 2009. "Reallocating Water: An Application of Sequent," Working Papers 2009.126, Fondazione Eni Enrico Mattei.
  9. Corazzini, Luca & Esposito, Lucio & Majorano, Francesca, 2011. "Exploring the absolutist vs relativist perception of poverty using a cross-country questionnaire survey," Journal of Economic Psychology, Elsevier, vol. 32(2), pages 273-283, March.

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