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Institutional framing and perceptions of fairness

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  • R. Isaac
  • Deborah Mathieu
  • Edward Zajac

Abstract

This paper's goal is to construct a positive theory of economic fairness. Using the theoretical schema developed by Hurwicz and others, the paper makes precise the notions of an “institution,” “fairness fraiming,” and “institutional framing.” Four fairness propositions yield an important corollary: the economic environment, the operative institution and history give meaning to the often used FORMAL PRINCIPLE OF DISTRIBUTIVE JUSTICE (“equals should be treated equally, and unequals unequellay, in proportion to relevant similarities and differences”). We support these four propositions and corollary by an analysis of laboratory, survey, and anecdotal evidence. Finally we describe a number of areas for future research. Copyright George Mason University 1991

Suggested Citation

  • R. Isaac & Deborah Mathieu & Edward Zajac, 1991. "Institutional framing and perceptions of fairness," Constitutional Political Economy, Springer, vol. 2(3), pages 329-370, September.
  • Handle: RePEc:kap:copoec:v:2:y:1991:i:3:p:329-370
    DOI: 10.1007/BF02393135
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    References listed on IDEAS

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    7. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-741, September.
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    Citations

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    Cited by:

    1. Bruno S. Frey & Stephan Meier, "undated". "Pro-Social Behavior, Reciprocity or Both?," IEW - Working Papers 107, Institute for Empirical Research in Economics - University of Zurich.
    2. Frank A.G. den Butter & Sjoerd ten Wolde, 2011. "The Institutional Economics of Stakeholder Consultation; Reducing Implementations Costs through 'Matching Zones'," Tinbergen Institute Discussion Papers 11-162/3, Tinbergen Institute.
    3. James Konow, 2000. "Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions," American Economic Review, American Economic Association, vol. 90(4), pages 1072-1091, September.
    4. Ekkehart Schlicht, 2008. "Consistency in Organization," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(4), pages 612-623, December.
    5. Elinor Ostrom, 2010. "Analyzing collective action," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 155-166, November.
    6. repec:spr:sochwe:v:49:y:2017:i:2:d:10.1007_s00355-017-1058-4 is not listed on IDEAS
    7. Elliott, Catherine S. & Hayward, Donald M. & Canon, Sebastian, 1998. "Institutional framing: Some experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 35(4), pages 455-464, May.
    8. Elliott, Catherine S. & Fitzgerald, Keith & Hayward, Donald M. & Krasteva, Stela, 2009. "Some indications of limits to framing the policy preferences of the civically engaged: Interplay of social capital, race attitudes, and social justice frames," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 96-103, January.
    9. Elliott, Catherine S. & Hayward, Donald M., 1998. "The expanding definition of framing and its particular impact on economic experimentation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 27(2), pages 229-243.
    10. Otto, Ilona M. & Wechsung, Frank, 2014. "The effects of rules and communication in a behavioral irrigation experiment with power asymmetries carried out in North China," Ecological Economics, Elsevier, vol. 99(C), pages 10-20.
    11. Konow, James, 1996. "A positive theory of economic fairness," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 13-35, October.
    12. Schotter, Andrew & Weiss, Avi & Zapater, Inigo, 1996. "Fairness and survival in ultimatum and dictatorship games," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 37-56, October.
    13. Bohnet, Iris & Frey, Bruno S., 1999. "The sound of silence in prisoner's dilemma and dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 43-57, January.
    14. Konow, James, 2001. "Fair and square: the four sides of distributive justice," Journal of Economic Behavior & Organization, Elsevier, vol. 46(2), pages 137-164, October.
    15. Langmyhr, Tore, 1997. "Managing equity : The case of road pricing," Transport Policy, Elsevier, vol. 4(1), pages 25-39, January.
    16. Frey, Bruno S. & Meier, Stephan, 2004. "Pro-social behavior in a natural setting," Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 65-88, May.
    17. Kakizawa, Hisanobu, 2017. "The value of punishment of free riders: A case study on the receiving fee system of the Japanese public broadcasting organization," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168496, International Telecommunications Society (ITS).
    18. Neuteleers, Stijn & Mulder, Machiel & Hindriks, Frank, 2017. "Assessing fairness of dynamic grid tariffs," Energy Policy, Elsevier, vol. 108(C), pages 111-120.

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