The Relevance of Procedural Utility for Economics
AbstractThis paper aims at showing the relevance of procedural utility for economics: people do not only care about outcomes, as usually assumed in economics, they also value the processes and conditions leading to outcomes. The psychological foundations of procedural utility are outlined and it is discussed how the concept differs from other related approaches in economics, like outcome utility, outcome fairness or intentions. Institutions at the level of society and fair procedures are shown to be sources of procedural utility, and novel empirical evidence on the role of procedural utility in important areas of the economy, polity and society is presented.
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Bibliographic InfoPaper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 256.
Date of creation: Oct 2005
Date of revision:
procedural utility; outcome utility; institutions; procedural fairness; outcome fairness; intentions;
Find related papers by JEL classification:
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-29 (All new papers)
- NEP-CBE-2005-10-29 (Cognitive & Behavioural Economics)
- NEP-EVO-2005-10-29 (Evolutionary Economics)
- NEP-SOC-2005-10-29 (Social Norms & Social Capital)
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