Equality-Efficiency Trade-off within French and German Couples – A Comparative Experimental Study
AbstractWe present the results of an experiment measuring social preferences within couples in a context where intra-household pay-off inequality can be reduced at the cost of diminishing household income. We measure social norms regarding this efficiency-equality trade-off and implement a cross-country comparison between France and Germany. In particular, we show that German households are more inequality averse and are thus less efficient than French households. A decomposition of this difference reveals that approximately 40% is driven by diverging sample compositions in the two countries, while 60% of the initial French/German difference remains unexplained. Beliefs differ significantly from observed behavior in both countries. Efficient choices are overestimated in the German sample and underestimated in the French.
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Bibliographic InfoPaper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 12-374.
Date of creation: Nov 2012
Date of revision:
Intra-household allocation; Inequality aversion; Pareto efficiency; social norms;
Other versions of this item:
- Beblo, Miriam & Beninger, Denis & Cochard, Francois & Couprie, Helene & Hopfensitz, Astrid, 2013. "Equality-Efficiency Trade-off within French and German Couples - A Comparative Experimental Study," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79759, Verein für Socialpolitik / German Economic Association.
- Hélène Couprie & Miriam Beblo & Denis Beninger & François Cochard & Astrid Hopfensitz, 2012. "Equality-Efficiency Trade-off within French and German Couples – A Comparative Experimental Study," THEMA Working Papers 2012-44, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
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