IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2013-003.html
   My bibliography  Save this paper

Fairness That Money Can Buy - Procedural Egalitarianism in Practice

Author

Listed:
  • Werner Güth

    (Max Planck Institute of Economics, Strategic Interaction Group, Jena)

  • Hartmut Kliemt

Abstract

We suggest that procedures of monetarized bidding can facilitate co-operation in Elinor Ostrom type common(s) projects without crowding out communitarian faculties of "self-governance". Axioms securing procedurally egalitarian bidding on the basis of declared monetary evaluations are introduced. They guarantee that all realized changes of a status quo are in an "objective" (pecuniary) sense equally advantageous for all members of the community. Some empirical evidence that procedurally fair bidding can promote communitarian co-operation rather than crowding it out, is presented. The practical scope and limits of procedural egalitarianism need further empirical exploration, though.

Suggested Citation

  • Werner Güth & Hartmut Kliemt, 2013. "Fairness That Money Can Buy - Procedural Egalitarianism in Practice," Jena Economics Research Papers 2013-003, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2013-003
    as

    Download full text from publisher

    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2013/wp_2013_003.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bruno S. Frey, 1997. "Not Just for the Money," Books, Edward Elgar Publishing, number 1183.
    2. Werner Güth & Anastasios Koukoumelis & M. Vittoria Levati & Matteo Ploner, 2012. "Public projects benefiting some and harming others: three experimental studies," Jena Economics Research Papers 2012-034, Friedrich-Schiller-University Jena.
    3. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753.
    4. Kliemt, Hartmut, 1994. "The Calculus of Consent after Thirty Years," Public Choice, Springer, vol. 79(3-4), pages 341-353, June.
    5. Roger B. Myerson, 1981. "Optimal Auction Design," Mathematics of Operations Research, INFORMS, vol. 6(1), pages 58-73, February.
    6. Satz, Debra, 2010. "Why Some Things Should Not Be for Sale: The Moral Limits of Markets," OUP Catalogue, Oxford University Press, number 9780195311594.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Güth, Werner, 2014. "Endogenous community formation and collective provision – A procedurally fair mechanism," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 389-395.
    2. Werner Gueth & Hartmut Kliemt, 2021. "Sustainable Procedures of Corporate Social Responsibility," MAGKS Papers on Economics 202108, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    2. Alshamy, Yahya & Coyne, Christopher J. & Goodman, Nathan, 2023. "Noxious government markets: Evidence from the international arms trade," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 87-99.
    3. Benno Torgler, 2004. "A Knight Without a Sword or a Toothless Tiger? The Effects of Audit Courts on Tax Morale in Switzerland," CREMA Working Paper Series 2004-06, Center for Research in Economics, Management and the Arts (CREMA).
    4. Piotr Dworczak & Scott Duke Kominers & Mohammad Akbarpour, 2021. "Redistribution Through Markets," Econometrica, Econometric Society, vol. 89(4), pages 1665-1698, July.
    5. Natalie Gold, 2019. "The limits of commodification arguments: Framing, motivation crowding, and shared valuations," Politics, Philosophy & Economics, , vol. 18(2), pages 165-192, May.
    6. Federica Nalli, 2023. "What Mutual Assistance Is, and What It Could Be in the Contemporary World," Journal of Business Ethics, Springer, vol. 182(4), pages 1041-1053, February.
    7. Werner Güth & Hartmut Kliemt, 2011. "Procedurally Fair Provision of Public Projects An axiomatic characterization," Jena Economics Research Papers 2011-016, Friedrich-Schiller-University Jena.
    8. Beckmann Klaus & Gerrits Carsten, 2009. "Armutsbekämpfung durch Reduktion von Korruption: eine Rolle für Unternehmen? / Fighting poverty by fighting corruption: A task for private enterprise?," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 60(1), pages 463-494, January.
    9. Onderstal, Sander & Schram, Arthur J.H.C. & Soetevent, Adriaan R., 2013. "Bidding to give in the field," Journal of Public Economics, Elsevier, vol. 105(C), pages 72-85.
    10. Neuteleers, Stijn & Engelen, Bart, 2015. "Talking money: How market-based valuation can undermine environmental protection," Ecological Economics, Elsevier, vol. 117(C), pages 253-260.
    11. Ben Wempe & Jeff Frooman, 2018. "Reframing the Moral Limits of Markets Debate: Social Domains, Values, Allocation Methods," Journal of Business Ethics, Springer, vol. 153(1), pages 1-15, November.
    12. P M Dawson & Philip Jones, 2010. "How are They Spending my Taxes? Tax Compliance and Citizens’ Interest in Politics," Department of Economics Working Papers 11/10, University of Bath, Department of Economics.
    13. Fabio Padovano, 2013. "Are we witnessing a paradigm shift in the analysis of political competition?," Public Choice, Springer, vol. 156(3), pages 631-651, September.
    14. Jones, Philip & Dawson, Peter, 2007. "`Choice' in collective decision-making processes: Instrumental or expressive approval?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(1), pages 102-117, February.
    15. Bruno S Frey & Jana Gallus, 2016. "Honors: A rational choice analysis of award bestowals," Rationality and Society, , vol. 28(3), pages 255-269, August.
    16. Yew-Kwang NG, 2016. "Extending Economic Analysis to Analyze Policy Issues More Broadly," Economic Growth Centre Working Paper Series 1609, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    17. Shengwu Li, 2017. "Ethics and market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 705-720.
    18. Jones Philip & Soguel Nils, 2010. "Fiscal Federalism at the Ballot Box: The Relevance of Expressive Voting," Review of Law & Economics, De Gruyter, vol. 6(3), pages 469-488, December.
    19. Onderstal, Sander & Schram, Arthur J.H.C. & Soetevent, Adriaan R., 2014. "Reprint of: Bidding to give in the field," Journal of Public Economics, Elsevier, vol. 114(C), pages 87-100.
    20. Silvestri, Paolo, 2018. "Welfare State and Taxation. The Critical Point of Freedom Between Gift and Corruption," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201803, University of Turin.

    More about this item

    Keywords

    Fair Procedures; Egalitarian Mechanisms; Unanimity; Constitutional Political Economy; Non-State Communities; Governing the Commons; Crowding out;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2013-003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Markus Pasche (email available below). General contact details of provider: http://www.jenecon.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.