Inconsistency of fairness evaluation in simulated labot market
AbstractReciprocal behavior was often explained by perception of fairness derived from either agents’ intention or distributional outcome. In this paper, we demonstrated that fairness perception depended on the evaluability of the partner’s type. We conducted experiments to investigate how workers formed fairness perception on the employers. We found inconsistency in fairness evaluation in the two simulated worker-employer relations; workers derived fairness by comparing own wage with market wage in a one shot interaction, but workers derived fairness based on current and previous wage when interacting with same employer. The reversal of fairness perception suggested the role of evaluability of partners’ attribute in effort decision among workers.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 21527.
Date of creation: Jan 2010
Date of revision:
Preference reversal; reciprocity; gift exchange; evaluability hypothesis; experiment.;
Find related papers by JEL classification:
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
- B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-04 (All new papers)
- NEP-CBE-2010-04-04 (Cognitive & Behavioural Economics)
- NEP-EVO-2010-04-04 (Evolutionary Economics)
- NEP-EXP-2010-04-04 (Experimental Economics)
- NEP-HPE-2010-04-04 (History & Philosophy of Economics)
- NEP-SOC-2010-04-04 (Social Norms & Social Capital)
- NEP-UPT-2010-04-04 (Utility Models & Prospect Theory)
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