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Fairness and limited information: Are people Bayesian meritocrats?

Author

Listed:
  • Cappelen, Alexander

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Haan, Thomas de

    (University of Bergen)

  • Tungodden, Bertil

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract

Meritocracy is a prominent fairness view in many societies, but often difficult to apply because there is limited information about the source of inequality. This paper studies theoretically and empirically how limited information affects inequality acceptance. We connect the literatures on fairness and belief updating and show that irrationality in belief updating is potentially as important as differences in fairness views in explaining inequality acceptance. In many economic environments with limited information, signal-neglecting meritocrats act as egalitarians and base-rate neglecting meritocrats act as libertarians. The findings contribute to better understanding of the foundations of inequality acceptance in society.

Suggested Citation

  • Cappelen, Alexander & Haan, Thomas de & Tungodden, Bertil, 2022. "Fairness and limited information: Are people Bayesian meritocrats?," Discussion Paper Series in Economics 7/2022, Norwegian School of Economics, Department of Economics.
  • Handle: RePEc:hhs:nhheco:2022_007
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    Citations

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    Cited by:

    1. Preuss, Marcel & Reyes, Germán & Somerville, Jason & Wu, Joy, 2022. "Inequality of Opportunity and Income Redistribution," VfS Annual Conference 2022 (Basel): Big Data in Economics 264138, Verein für Socialpolitik / German Economic Association.
    2. Marcel Preuss & Germán Reyes & Jason Somerville & Joy Wu, 2023. "Inequality of Opportunity and Income Redistribution," CESifo Working Paper Series 10383, CESifo.
    3. Marcel Preuss & Germán Reyes & Jason Somerville & Joy Wu, 2023. "Inequality of Opportunity and Income Redistribution," CEDLAS, Working Papers 0309, CEDLAS, Universidad Nacional de La Plata.
    4. Marcel Preuss & Germán Reyes & Jason Somerville & Joy Wu, 2024. "Inequality of Opportunity and Income Redistribution," CRC TR 224 Discussion Paper Series crctr224_2024_491, University of Bonn and University of Mannheim, Germany.
    5. Marcel Preuss & Germ'an Reyes & Jason Somerville & Joy Wu, 2022. "Inequality of Opportunity and Income Redistribution," Papers 2209.00534, arXiv.org, revised Mar 2024.

    More about this item

    Keywords

    Fairness; Meritocracy;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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