Fairness and Promises for Sale
AbstractWhile many studies have shown that fairness matters few efforts have been made to find out how important fairness is to the individual and thereby assessing the limits of these fairness concerns. This study reports on Trust game experiments in Sweden and Jamaica where subjects could forego a more fair allocation in return for extra money. The results indicate that 90 percent of subjects that had demonstrated fairness ambitions were willing to let down their counterparts if compensated. Explicit promises did not seem to matter. The first player was informed that the second player could earn extra money by changing to an unfair allocation. This modification appeared to make the trust aspect more salient which can explain a relatively strong consistency between trust behavior and answers to attitudinal trust questions.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2004:18.
Length: 54 pages
Date of creation: 22 Jun 2004
Date of revision: 15 Aug 2005
Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
More information through EDIRC
Experiments; trust game; fairness; inequality aversion; opportunism; promise;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-27 (All new papers)
- NEP-CBE-2004-06-27 (Cognitive & Behavioural Economics)
- NEP-EVO-2004-06-27 (Evolutionary Economics)
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