Chance versus choice: eliciting attitudes to fair compensations
AbstractThis paper reports an experiment designed to elicit social preferences over income compensation schemes, where income differences between subjects have two independent components: one due to chosen effort and the other due to random chance. These differences can be compensated through social dividends, according to principles chosen beforehand by subjects themselves from behind a stylised Rawlsian veil of ignorance, or outside the society on which the principles will be implemented. We test the attractiveness in particular of Luck Egalitarianism, compensating inequalities due to chance but not those due to choice. We find modest but not overwhelming support for these principles, suggesting that subjectsâ€™actual preferences are more complex.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, University of York in its series Discussion Papers with number 13/15.
Date of creation: Jul 2013
Date of revision:
Contact details of provider:
Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
Phone: (0)1904 323776
Fax: (0)1904 323759
Web page: http://www.york.ac.uk/economics/
More information through EDIRC
chance; choice; envy-freeness; fairness; luck; luck egalitarianism; responsibility;
Other versions of this item:
- John Bone & Paolo Crosetto & John D. Hey & Carmen Pasca, 2013. "Change versus choice: eliciting attitudes to fair compensations," Jena Economic Research Papers 2013-029, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-28 (All new papers)
- NEP-CBE-2013-07-28 (Cognitive & Behavioural Economics)
- NEP-DCM-2013-07-28 (Discrete Choice Models)
- NEP-EXP-2013-07-28 (Experimental Economics)
- NEP-HRM-2013-07-28 (Human Capital & Human Resource Management)
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.:
- Magnus Johannesson & Ulf-G Gerdtham, 1995. "A pilot test of using the veil of ignorance approach to estimate a social welfare function for income," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 400-402.
- Antonio Cabrales & Raffaele Miniaci & Marco Piovesan & Giovanni Ponti, 2008.
"Social Preferences and Strategic Uncertainty: An Experiment on Markets and Contracts,"
08-06, University of Copenhagen. Department of Economics.
- Antonio Cabrales & Raffaele Miniaci & Marco Piovesan & Giovanni Ponti, 2010. "Social Preferences and Strategic Uncertainty: An Experiment on Markets and Contracts," American Economic Review, American Economic Association, vol. 100(5), pages 2261-78, December.
- Antonio Cabrales & Raffaele Miniaci & Marco Piovesan & Giovanni Ponti, 2009. "Social Preferences and Strategic Uncertainty: An Experiment on Markets and Contracts," Working Papers 2009-09, FEDEA.
- Hörisch, Hannah, 2008.
"Is the veil of ignorance only a concept about risk? An experiment,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
230, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Schildberg-Hörisch, Hannah, 2010. "Is the veil of ignorance only a concept about risk? An experiment," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1062-1066, December.
- Hörisch, Hannah, 2007. "Is the veil of ignorance only a concept about risk? An experiment," Discussion Papers in Economics 1362, University of Munich, Department of Economics.
- Panzer, Elisha A & Schmeidler, David, 1974. "A Difficulty in the Concept of Fairness," Review of Economic Studies, Wiley Blackwell, vol. 41(3), pages 441-43, July.
- John Hey & Carmen Pasca, 2011. "On choosing a constitution (at least the part relating to the distribution of income)," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1213-1217.
- Carlsson , Fredrik & Gupta, Gautam & Johansson-Stenman, Olof, 2002.
"Choosing from Behind a Veil of Ignorance in India,"
Working Papers in Economics
72, University of Gothenburg, Department of Economics.
- Bukszar, Ed & Knetsch, Jack L, 1997. "Fragile Redistribution Choices behind a Veil of Ignorance," Journal of Risk and Uncertainty, Springer, vol. 14(1), pages 63-74, January.
- Fredrik Andersson & Carl Hampus Lyttkens, 1999. "Preferences for equity in health behind a veil of ignorance," Health Economics, John Wiley & Sons, Ltd., vol. 8(5), pages 369-378.
- Fleurbaey, Marc, 2008.
"Fairness, Responsibility, and Welfare,"
Oxford University Press, number 9780199215911.
- Frignani, Nicola & Ponti, Giovanni, 2012. "Risk versus social preferences under the veil of ignorance," Economics Letters, Elsevier, vol. 116(2), pages 143-146.
- Sutter, Matthias & Weck-Hannemann, Hannelore, 2003. " Taxation and the Veil of Ignorance--A Real Effort Experiment on the Laffer Curve," Public Choice, Springer, vol. 115(1-2), pages 217-40, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Hodgson).
If references are entirely missing, you can add them using this form.