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The Role of Equality, Efficiency, and Rawlsian Motives in Social Preferences: A Reply to Engelmann and Strobel

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  • Fehr, Ernst
  • Schmidt, Klaus M.

Abstract

In a recent paper Engelmann and Strobl claim that a combination of a preference for efficiency and a Rawlsian motive for helping the least well-off is far more important than inequity aversion. Here we show that the relevance of the efficiency motive is largely restricted to students of economics and business administration. Students from other disciplines, adult academics from various disciplines and senior citizens value equality much higher than efficiency. Moreover, there is rather strong evidence that the relevance of the efficiency motive and the Rawlsian motive is largely restricted to non-strategic interactions.

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Bibliographic Info

Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20655.

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Date of creation: 2004
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Handle: RePEc:lmu:muenar:20655

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  1. Dirk Engelmann & Martin Strobel, 2006. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments: Reply," American Economic Review, American Economic Association, vol. 96(5), pages 1918-1923, December.
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Cited by:
  1. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2004. "Calculating Tragedy: Assessing the Costs of Terrorism," CREMA Working Paper Series 2004-23, Center for Research in Economics, Management and the Arts (CREMA).
  2. Daruvala, Dinky, 2006. "Would The Right Social Preference Model Please Stand Up!," Working Papers in Economics 210, University of Gothenburg, Department of Economics.

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