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Process fairness and dynamic consistency

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  • Trautmann, Stefan T.
  • Wakker, Peter P.

Abstract

When process fairness deviates from outcome fairness, dynamic inconsistencies can arise as in nonexpected utility. Resolute choice (Machina) can restore dynamic consistency under nonexpected utility without using Strotz's precommitment. It can similarly justify dynamically consistent process fairness.

Suggested Citation

  • Trautmann, Stefan T. & Wakker, Peter P., 2010. "Process fairness and dynamic consistency," Economics Letters, Elsevier, vol. 109(3), pages 187-189, December.
    • Handle: RePEc:eee:ecolet:v:109:y:2010:i:3:p:187-189
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    References listed on IDEAS

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    Cited by:

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    3. Stefan Grimm & Martin G. Kocher & Michal Krawczyk & Fabrice Lec, 2021. "Sharing or gambling? On risk attitudes in social contexts," Experimental Economics, Springer;Economic Science Association, vol. 24(4), pages 1075-1104, December.
    4. Mollerstrom, Johanna & Reme, Bjørn-Atle & Sørensen, Erik Ø., 2015. "Luck, choice and responsibility — An experimental study of fairness views," Journal of Public Economics, Elsevier, vol. 131(C), pages 33-40.
    5. Grimalda, Gianluca & Kar, Anirban & Proto, Eugenio, "undated". "Everyone Wants a Chance : Initial Positions and Fairness in Ultimatum Games," Economic Research Papers 270638, University of Warwick - Department of Economics.
    6. Stefan Trautmann, 2010. "Individual fairness in Harsanyi’s utilitarianism: operationalizing all-inclusive utility," Theory and Decision, Springer, vol. 68(4), pages 405-415, April.
    7. Dorian Jullien, 2019. "Under Risk, Over Time and Regarding Other People: Rationality Across Three Dimensions," Working Papers hal-03233897, HAL.
    8. Schmidt, Robert J. & Trautmann, Stefan T., 2019. "Implementing (Un)fair Procedures? Favoritism and Process Fairness when Inequality is Inevitable," Other publications TiSEM 125472e2-51a2-4cf9-aab5-1, Tilburg University, School of Economics and Management.
    9. Randolph Sloof & Ferdinand von Siemens, 2015. "Decision Initiation, Decision Implementation, and the Allocation of Decision Rights," CESifo Working Paper Series 5509, CESifo.
    10. Yiting Chen & Songfa Zhong, 2025. "People Are More Moral in Uncertain Environments," Econometrica, Econometric Society, vol. 93(2), pages 439-462, March.
    11. Stefan T. Trautmann & Gijs Kuilen, 2016. "Process fairness, outcome fairness, and dynamic consistency: Experimental evidence for risk and ambiguity," Journal of Risk and Uncertainty, Springer, vol. 53(2), pages 75-88, December.
    12. Hyndman, Kyle & Walker, Matthew J., 2022. "Fairness and risk in ultimatum bargaining," Games and Economic Behavior, Elsevier, vol. 132(C), pages 90-105.
    13. Hannah Schildberg-Hörisch & Christina Strassmair, 2012. "An Experimental Test of the Deterrence Hypothesis," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 28(3), pages 447-459, August.
    14. James Andreoni & Deniz Aydin & Blake Barton & B. Douglas Bernheim & Jeffrey Naecker, 2020. "When Fair Isn’t Fair: Understanding Choice Reversals Involving Social Preferences," Journal of Political Economy, University of Chicago Press, vol. 128(5), pages 1673-1711.
    15. Guy Kaplanski & Haim Levy, 2017. "Envy and Altruism: Contrasting Bivariate and Univariate Prospect Preferences," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(2), pages 457-483, April.
    16. Stefan T. Trautmann, 2023. "Procedural fairness and equality of opportunity," Journal of Economic Surveys, Wiley Blackwell, vol. 37(5), pages 1697-1714, December.
    17. Christoph Becker & Dietmar Fehr & Hannes Rau & Stefan T. Trautmann & Yilong Xu, 2025. "Fairness Properties of Compensation Schemes," CESifo Working Paper Series 11943, CESifo.
    18. Gianluca Grimalda & Anirban Kar & Eugenio Proto, 2016. "Procedural fairness in lotteries assigning initial roles in a dynamic setting," Experimental Economics, Springer;Economic Science Association, vol. 19(4), pages 819-841, December.
    19. Bin Miao & Songfa Zhong, 2018. "Probabilistic social preference: how Machina’s Mom randomizes her choice," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(1), pages 1-24, January.
    20. von Siemens, Ferdinand A., 2024. "Strategic ignorance and procedural fairness preferences," Economics Letters, Elsevier, vol. 242(C).
    21. Christine L. Exley & Judd B. Kessler, 2018. "Equity Concerns are Narrowly Framed," NBER Working Papers 25326, National Bureau of Economic Research, Inc.

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