Does procedural fairness crowd out other-regarding concerns? A bidding experiment
AbstractBidding rules that guarantee procedural fairness may induce more equilibrium bidding and moderate other-regarding concerns. In our experiment, we assume commonly known true values and only two bidders to implement a best-case scenario for other-regarding concerns. The two-by-two factorial design varies ownership of the single indivisible commodity (an outside seller versus collective ownership) and the price rule (first versus second price). Our results indicate more equilibrium behavior under the procedurally fair price rule, what, however, does not completely crowd out equality and efficiency seekin
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-073.
Date of creation: 26 Oct 2010
Date of revision:
Auctions; Fair Division Games; Procedural fairness;
Other versions of this item:
- Werner Güth & M. Vittoria Levati & Matteo Ploner, 2013. "Does Procedural Fairness Crowd Out Other-Regarding Concerns? A Bidding Experiment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(3), pages 433-450, September.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-06 (All new papers)
- NEP-CBE-2010-11-06 (Cognitive & Behavioural Economics)
- NEP-CDM-2010-11-06 (Collective Decision-Making)
- NEP-EXP-2010-11-06 (Experimental Economics)
- NEP-GTH-2010-11-06 (Game Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nadine Chlaß & Werner Güth & Topi Miettinen, 2009. "Beyond Procedural Equity and Reciprocity," Jena Economic Research Papers 2009-069, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
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