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Approaching Fair Behavior: Distributional And Reciprocal Preferences

In: Inequality, Welfare and Income Distribution: Experimental Approaches

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  • Alexander Kritikos
  • Friedel Bolle

Abstract

This paper suggests to combine different kind of “other-regarding” preferences as an approach to fair behavior which is observed in controlled experiments. We assert that participants in two-person experiments have a good will capital which may be described by altruistic preferences. These preferences guide a large fraction of participants when they have to make distributional choices in one-stage games. We further show that in games with more than one stage the previous action of the other person may cause reciprocal feelings in addition to the altruistic preferences. A friendly (unfriedly) act of the other person may increase (decrease) the good will capital of the participants. Upon these findings, we conclude that a combination of altruism and reciprocity is able to describe the variety of behavior in several experiments despite their differing strategic context.

Suggested Citation

  • Alexander Kritikos & Friedel Bolle, 2004. "Approaching Fair Behavior: Distributional And Reciprocal Preferences," Research on Economic Inequality, in: Inequality, Welfare and Income Distribution: Experimental Approaches, pages 149-180, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(04)11008-9
    DOI: 10.1016/S1049-2585(04)11008-9
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