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Justice Under Uncertainty

Author

Listed:
  • Elena Cettolin

    (Department of Economics, Tilburg School of Economics and Management, Tilburg University, 5000 LE Tilburg, Netherlands)

  • Arno Riedl

    (CESifo, IZA, Netspar, Department of Economics (AE1), School of Economics and Business, Maastricht University, 6200 MD Maastricht, Netherlands)

Abstract

Uncertain outcomes are an inevitable feature of policy choices and their public support often depends on their perceived justice. We theoretically and experimentally explore just allocations when recipients are exposed to certainty and uncertainty. In the experiment, uninvolved participants unequivocally choose to allocate resources equally between recipients, when there is certainty. In stark contrast, with uncertainty just allocations are widely dispersed and recipients exposed to higher degrees of uncertainty are allocated less. The observed allocations can be well organized by four different theoretical views of justice, indicating that uninvolved participants differ fundamentally in their views on justice under uncertainty.

Suggested Citation

  • Elena Cettolin & Arno Riedl, 2017. "Justice Under Uncertainty," Management Science, INFORMS, vol. 63(11), pages 3739-3759, November.
  • Handle: RePEc:inm:ormnsc:v:63:y:2017:i:11:p:3739-3759
    DOI: 10.1287/mnsc.2016.2535
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    2. Erik Schokkaert & Benoît Tarroux, 2021. "Empirical research on ethical preferences: how popular is prioritarianism?," Working Papers halshs-03110312, HAL.
    3. Doerrenberg, Philipp & Duncan, Denvil, 2014. "Experimental evidence on the relationship between tax evasion opportunities and labor supply," European Economic Review, Elsevier, vol. 68(C), pages 48-70.
    4. Elena Cettolin & Arno Riedl & Giang Tran, 2017. "Giving in the face of risk," Journal of Risk and Uncertainty, Springer, vol. 55(2), pages 95-118, December.
    5. Alós-Ferrer, Carlos & Garagnani, Michele, 2020. "The cognitive foundations of cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 71-85.
    6. Gagnon, Nickolas & Bosmans, Kristof & Riedl, Arno, 2020. "The Effect of Unfair Chances and Gender Discrimination on Labor Supply," Research Memorandum 005, Maastricht University, Graduate School of Business and Economics (GSBE).
    7. Schlag, Karl H. & van der Weele, Joël J., 2015. "A method to elicit beliefs as most likely intervals," Judgment and Decision Making, Cambridge University Press, vol. 10(5), pages 456-468, September.
    8. John Bone & Paolo Crosetto & John Hey & Carmen Pasca, 2021. "The Acceptability of Accountability," Constitutional Political Economy, Springer, vol. 32(4), pages 476-501, December.
    9. Anita Gantner & Rudolf Kerschbamer, 2018. "Social interaction effects: The impact of distributional preferences on risky choices," Journal of Risk and Uncertainty, Springer, vol. 56(2), pages 141-164, April.
    10. Gerber, Anke & Nicklisch, Andreas & Voigt, Stefan, 2013. "Strategic choices for redistribution and the veil of ignoranceː theory and experimental evidence," WiSo-HH Working Paper Series 5, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    11. Vesely, Stepan & Wengström, Erik, 2017. "Risk and Cooperation: Experimental Evidence from Stochastic Public Good Games," Working Papers 2017:3, Lund University, Department of Economics.
    12. Tim Krieger & Christine Meemann & Stefan Traub, 2022. "Inequality, Life Expectancy, and the Intragenerational Redistribution Puzzle - Some Experimental Evidence," CESifo Working Paper Series 9677, CESifo.
    13. Müller Daniel & Sander Renes, 2019. "Fairness Views and Political Preferences - Evidence from a representative sample," Working Papers 2019-08, Faculty of Economics and Statistics, Universität Innsbruck.
    14. Gill, David & Prowse, Victoria, 2019. "Measuring costly effort using the slider task," Journal of Behavioral and Experimental Finance, Elsevier, vol. 21(C), pages 1-9.
    15. Embrey, Matthew & Hyndman, Kyle & Riedl, Arno, 2021. "Bargaining with a residual claimant: An experimental study," Games and Economic Behavior, Elsevier, vol. 126(C), pages 335-354.
    16. João V. Ferreira & Erik Schokkaert & Benoît Tarroux, 2023. "How group deliberation affects individual distributional preferences: An experimental study," Working Papers 2301, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    17. Gago, Andrés, 2021. "Reciprocity and uncertainty: When do people forgive?," Journal of Economic Psychology, Elsevier, vol. 84(C).
    18. Benoît Tarroux, 2017. "The value of progressivity: Evidence from survey experiments," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2017-13, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    19. Gerber, Anke & Nicklisch, Andreas & Voigt, Stefan, 2019. "The role of ignorance in the emergence of redistribution," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 239-261.
    20. Hyndman, Kyle & Walker, Matthew J., 2022. "Fairness and risk in ultimatum bargaining," Games and Economic Behavior, Elsevier, vol. 132(C), pages 90-105.
    21. repec:cup:judgdm:v:10:y:2015:i:5:p:456-468 is not listed on IDEAS
    22. Anke Gerber & Andreas Nicklisch & Stefan Voigt, 2013. "Strategic Choices for Redistribution and the Veil of Ignorance: Theory and Experimental Evidence," CESifo Working Paper Series 4423, CESifo.
    23. Tigran Melkonyan & Zvi Safra & Sinong Ma, 2021. "Justice in an uncertain world: Evidence on donations to cancer research," Journal of Risk and Uncertainty, Springer, vol. 62(3), pages 281-311, June.

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    More about this item

    Keywords

    justice; uncertainty; experiment;
    All these keywords.

    JEL classification:

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

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