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Selfishness and Altruism in the Distribution of Travel Time and Income

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Author Info
Nebiyou Tilahun
David Levinson () (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

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Abstract

Most economic models assume that individuals act out their preferences based on their own self interest. However there have also been other paradigms in the economics literature that have tried to capture alternative manifestations of human behavior that include fairness. This study examines people's preferences when it comes to their travel time and their income and what type of trade offs they are willing to make to live in a society where the distributions of travel time and income are fairer. Using a stated preference experiment we find that when it comes to travel time, individuals are more concerned with societal average travel time, followed by their own travel time and finally by large inequalities in the society, while in the case of income they are more concerned with their own income, followed by societal average and finally by inequality.

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File URL: http://nexus.umn.edu/Papers/Selfishness.pdf
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File Function: First version, 2007
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Publisher Info
Paper provided by University of Minnesota: Nexus Research Group in its series Working Papers with number 000023.

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Date of creation: 2006
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Handle: RePEc:nex:wpaper:selfishness

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Postal: Dept. of Civil Engineering, 500 Pillsbury Drive SE, Minneapolis, MN 55455
Phone: +01 (612) 625-6354
Fax: +01 (612) 626-7750
Web page: http://nexus.umn.edu
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Related research
Keywords: Fairness; Inequality; Travel Time; Income; Altruism; Stated Preference; Veil of ignorance; Equity; Time equity; Income Equity; Time distribution; Income Distribution.;

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Find related papers by JEL classification:
R41 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
R42 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Government and Private Investment Analysis
R48 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Government Pricing; Regulatory Policies
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D10 - Microeconomics - - Household Behavior - - - General
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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References listed on IDEAS
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.:
  1. Lei Zhang & David Levinson, 2005. "Balancing Efficiency and Equity of Ramp Meters," Working Papers 200508, University of Minnesota: Nexus Research Group. [Downloadable!]
  2. Nebiyou Tilahun & David Levinson, 2006. "A Moment of Time: Reliability in Route Choice using Stated Preference," Working Papers 000053, University of Minnesota: Nexus Research Group. [Downloadable!]
  3. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December. [Downloadable!] (restricted)
  4. Fredrik Carlsson & Dinky Daruvala & Olof Johansson-Stenman, 2005. "Are People Inequality-Averse, or Just Risk-Averse?," Economica, London School of Economics and Political Science, vol. 72(3), pages 375-396, 08. [Downloadable!] (restricted)
    Other versions:
  5. David Levinson & Ajay Kumar, 1994. "The Rational Locator: Why Travel Times Have Remained Stable," Working Papers 199402, University of Minnesota: Nexus Research Group. [Downloadable!]
  6. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," Journal of Business, University of Chicago Press, vol. 59(4), pages S285-300, October. [Downloadable!] (restricted)
  7. Engelmann,Dirk & Strobel,Martin, 2002. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," Research Memoranda 015, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
    Other versions:
  8. Gary E. Bolton & Axel Ockenfels, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March. [Downloadable!] (restricted)
  9. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December. [Downloadable!] (restricted)
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This page was last updated on 2009-12-6.


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