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Individual social welfare preferences: An experimental study

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  • Hong, Hao
  • Ding, Jianfeng
  • Yao, Yang

Abstract

This paper studies individual social welfare preferences when facing a trade-off between equality and efficiency using a modified distribution game in which subjects decide the income of two other subjects under different budgets and different “prices of equality.” We found that over half of the subjects made choices consistent with the generalized axiom of revealed preference. We then estimated individual social welfare preferences and found that the subjects had a wide range of preferences for equality and efficiency, although the majority weakly preferred efficiency over equality.

Suggested Citation

  • Hong, Hao & Ding, Jianfeng & Yao, Yang, 2015. "Individual social welfare preferences: An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 89-97.
  • Handle: RePEc:eee:soceco:v:57:y:2015:i:c:p:89-97
    DOI: 10.1016/j.socec.2015.05.002
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    Cited by:

    1. Ambec, Stefan & Garapin, Alexis & Muller, Laurent & Rahali, Bilel, 2016. "Trading off between equity and efficiency in dictator and trust games," TSE Working Papers 16-718, Toulouse School of Economics (TSE).
    2. repec:eee:pubeco:v:155:y:2017:i:c:p:1-10 is not listed on IDEAS

    More about this item

    Keywords

    Equality-efficiency tradeoff; Social planner; Social welfare preferences;

    JEL classification:

    • D3 - Microeconomics - - Distribution

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