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Is the veil of ignorance only a concept about risk? An experiment

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Author Info
Hörisch, Hannah
Abstract

We implement the Rawlsian thought experiment of a veil of ignorance in the laboratory which introduces risk and possibly social preferences. We find that both men and women react to the risk introduced by the veil of ignorance. Only the women additionally exhibit social preferences that reflect an increased concern for equality. Our results for women imply that maximin preferences can also be derived from a combination of some, not necessarily infinite risk aversion and social preferences. This result contrasts the Utilitarians' claim that maximin preferences necessarily represent preferences with infinite risk aversion.

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Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 1362.

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Date of creation: Jan 2007
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Handle: RePEc:lmu:muenec:1362

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Related research
Keywords: veil of ignorance; social preferences; equality; efficiency; experiment;

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D64 - Microeconomics - - Welfare Economics - - - Altruism
C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other

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  16. Andreoni, James & Vesterlund, Lise, 2001. "Which is the Fair Sex? Gender Differences in Altruism," Staff General Research Papers 1951, Iowa State University, Department of Economics.
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