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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.

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  • 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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    4. Ridinger, Garret, 2018. "Ownership, punishment, and norms in a real-effort bargaining experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 382-402.
    5. Yoshio Iida, 2020. "Confidence, power and distributive preferences," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 19(2), pages 207-222, November.
    6. Heike Hennig-Schmidt & Gari Walkowitz, 2017. "Moral Entitlements and Aspiration Formation in Asymmetric Bargaining: Experimental Evidence from Germany and China," Games, MDPI, Open Access Journal, vol. 8(4), pages 1-25, October.
    7. Feltovich, Nick, 2019. "Is earned bargaining power more fully exploited?," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 152-180.
    8. Heike Hennig-Schmidt & Bernd Irlenbusch & Rainer Michael Rilke & Gari Walkowitz, 2018. "Asymmetric outside options in ultimatum bargaining: a systematic analysis," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(1), pages 301-329, March.
    9. 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.
    10. 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.
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    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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