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Envy Freeness in Experimental Fair Division Problems

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  • Dorothea K. Herreiner
  • Clemens Puppe

Abstract

In the recent experimental literature several social preference models have been suggested that address observed behavior not reducible to the pursuit of self-interest. Inequality aversion is one such model where preferences are distributional. Frequently, envy is suggested as the underlying rationale for inequality aversion. Envy is a central criterion in the theoretical literature on fair division, whose definition (Foley 1967) differs from the more casual use of the word in the experimental literature. We present and discuss results from free-form bargaining experiments on fair division problems where the role of envy in Foley’s sense can be analyzed and compared to social preferences. We find that envy freeness does matter as a secondary criterion.

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Bibliographic Info

Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse28_2004.

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Length: 36
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:bon:bonedp:bgse28_2004

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Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
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Web page: http://www.bgse.uni-bonn.de

Related research

Keywords: Fairness; Envy Freeness; Social Preferences; Bargaining;

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References

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  1. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences With Simple Tests," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 817-869, August.
  2. Bereby-Meyer, Yoella & Niederle, Muriel, 2005. "Fairness in bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 56(2), pages 173-186, February.
  3. Gaertner, Wulf, 2009. "A Primer in Social Choice Theory: Revised Edition," OUP Catalogue, Oxford University Press, number 9780199565306.
  4. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
  5. Kritikos, Alexander & Bolle, Friedel, 2001. "Distributional concerns: equity- or efficiency-oriented?," Economics Letters, Elsevier, vol. 73(3), pages 333-338, December.
  6. Fehr, Ernst & Naef, Michael & Schmidt, Klaus M., 2004. "The Role of Equality and Efficiency in Social Preferences," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 30, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  7. James Konow, 2003. "Which Is the Fairest One of All? A Positive Analysis of Justice Theories," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1188-1239, December.
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Cited by:
  1. Dorothea K. Herreiner & Clemens Puppe, 2004. "Equitable Allocations in Experimental Bargaining Games: Inequality Aversion versus Efficiency," Bonn Econ Discussion Papers bgse29_2004, University of Bonn, Germany.
  2. Kohler, Stefan, 2013. "Inequality aversion causes equal or unequal division in alternating-offer bargaining," MPRA Paper 40764, University Library of Munich, Germany.
  3. Lars Schwettmann, 2012. "Competing allocation principles: time for compromise?," Theory and Decision, Springer, vol. 73(3), pages 357-380, September.
  4. Kohler, Stefan, 2012. "Envy can promote more equal division in alternating-offer bargaining," MPRA Paper 40761, University Library of Munich, Germany.

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