How to be kind? Outcomes versus Intentions as Determinants of Fairness

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How to be kind? Outcomes versus Intentions as Determinants of Fairness

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Luca Stanca ()

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Luca Stanca

Abstract

This paper presents an experimental analysis of the role of out comes and intentions for fair behavior. We consider a symmetric version of the gift-exchange game in a 2x2 design with two treatment variables: intentionality (¯rst mover's choice is either intentional or randomly determined) and outcome (¯rst mover's choice is either costly or free, ie compensated by the experimenter). The four treatments differ with respect to the presence-absence of intentionality and cost for the ¯rst mover, whereas the outcome of the ¯rst mover's action for the second mover's payo® is kept constant across treatments. The results indicate that intentions do not matter for fair behavior, whereas outcomes do matter. In particular, the effect of outcomes is due to concerns for distributional fairness, whereas there is no evidence of an intention-based role for outcomes through signalling kindness.

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Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 145.

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Length: 25 pages
Date of creation: Jul 2008
Date of revision: Jul 2008
Handle: RePEc:mib:wpaper:145

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-09-13 (All new papers)
NEP-CBE-2008-09-13 (Cognitive & Behavioural Economics)
NEP-EXP-2008-09-13 (Experimental Economics)
NEP-SOC-2008-09-13 (Social Norms & Social Capital)

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Full references

Cited by:
(explanations, 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.)

Ernst Fehr & Klaus M. Schmidt, 2009. "On Inequity Aversion A Reply to Binmore and Shaked," Discussion Papers 276, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
Other versions:
- Ernst Fehr & Klaus M. Schmidt, 2009. "On Inequity Aversion A Reply to Binmore and Shaked," Discussion Papers 256, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]

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