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The influence of decision power on distributive fairness

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  • Rode, Julian
  • Le Menestrel, Marc

Abstract

We study the influence of decision power on fairness in the division of gains from productive activity. In an experimental setting, two actors are involved in generating a gain, but only one contributes actively by completing a task. In three treatments, decision power to divide the gain is assigned to (1) the inactive, (2) both the inactive and the active, (3) the active participant. Results show that changes in decision power not only affect allocations in accordance with previous research, but that they also alter fairness perceptions. In particular, full decision power significantly enhances self-serving interpretations of fairness. We discuss implications for organizational design.

Suggested Citation

  • Rode, Julian & Le Menestrel, Marc, 2011. "The influence of decision power on distributive fairness," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 246-255, August.
  • Handle: RePEc:eee:jeborg:v:79:y:2011:i:3:p:246-255
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    Cited by:

    1. Otto, Philipp E. & Bolle, Friedel, 2015. "Exploiting one’s power with a guilty conscience: An experimental investigation of self-serving biases," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 79-89.
    2. Rodriguez-Lara, Ismael, 2016. "Equity and bargaining power in ultimatum games," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 144-165.
    3. repec:eee:ecolec:v:141:y:2017:i:c:p:213-221 is not listed on IDEAS
    4. Anbarci, Nejat & Feltovich, Nick, 2018. "How fully do people exploit their bargaining position? The effects of bargaining institution and the 50–50 norm," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 320-334.
    5. Bolton, Gary E. & Karagözoğlu, Emin, 2016. "On the influence of hard leverage in a soft leverage bargaining game: The importance of credible claims," Games and Economic Behavior, Elsevier, vol. 99(C), pages 164-179.
    6. Julian Rode & Marc Le Menestrel & Luk Van Wassenhove & Anthony Simon, 2015. "Ethical Analysis for Evaluating Sustainable Business Decisions: The Case of Environmental Impact Evaluation in the Inambari Hydropower Project," Sustainability, MDPI, Open Access Journal, vol. 7(8), pages 1-22, August.

    More about this item

    Keywords

    Fairness Experiments Power Self-serving bias Organizational design;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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