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Equity vs. efficiency vs. self-interest: on the use of dictator games to measure distributional preferences

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  • Pamela Jakiela

Abstract

We conduct modified dictator games in which price of giving varies across choice situations, and examine responses to price changes in two contexts—one where dictators divide their own earnings, and another where they divide the earnings of others. Varying the price of giving allows us to decompose social preferences into two components: the level of altruism when the price of giving is one, and the willingness to reduce aggregate payoffs to enhance equity. Changing the source of a dictator’s budget impacts her decisions because it affects the weight that she places on others’ payoffs. However, we find no impacts on the willingness to trade off equity and efficiency. Copyright Economic Science Association 2013

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  • Pamela Jakiela, 2013. "Equity vs. efficiency vs. self-interest: on the use of dictator games to measure distributional preferences," Experimental Economics, Springer;Economic Science Association, vol. 16(2), pages 208-221, June.
    • Handle: RePEc:kap:expeco:v:16:y:2013:i:2:p:208-221
    DOI: 10.1007/s10683-012-9332-x
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    Cited by:

    1. Peter G. Moffatt & Graciela Zevallos, 2021. "A Kuhn–Tucker model for behaviour in dictator games," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 7(2), pages 226-243, December.
    2. Nadine Chlaß & Lata Gangadharan & Kristy Jones, 2015. "Charitable Giving and Intermediation," Monash Economics Working Papers 18-15, Monash University, Department of Economics.
    3. Lotti, Lorenzo, 2020. "Generosity during Covid-19 the effect of social distancing and framing on donations in dictator games," MPRA Paper 102144, University Library of Munich, Germany.
    4. Fan, Jin & Li, Jun & Wu, Yanrui & Wang, Shanyong & Zhao, Dingtao, 2016. "The effects of allowance price on energy demand under a personal carbon trading scheme," Applied Energy, Elsevier, vol. 170(C), pages 242-249.
    5. Robson, Matthew, 2021. "Inequality aversion, self-interest and social connectedness," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 744-772.
    6. Lotti, Lorenzo, 2020. "Generosity during Covid-19 the effect of social distancing and framing on donations in dictator games," MPRA Paper 103826, University Library of Munich, Germany.
    7. Jakiela, Pamela, 2015. "How fair shares compare: Experimental evidence from two cultures," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 40-54.
    8. Gauriot, Romain & Heger, Stephanie A. & Slonim, Robert, 2020. "Altruism or diminishing marginal utility?," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 24-48.
    9. Bondemark, Anders & Andersson, Henrik & Brundell-Freij, Karin, 2023. "Do the distributional preferences of national infrastructure planners diverge from those of the public?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    10. Utteeyo Dasgupta & Subha Mani & Prakarsh Singh, 2020. "Searching for religious discrimination among childcare workers," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 362-382, May.
    11. Benjamin Ouvrard & Arnaud Reynaud & Stéphane Cezera & Alban Thomas & Dishant Jojit James & Murudaiah Shivamurthy, 2023. "Distributive Justice in the Field: How do Indian Farmers Share Water? ," Working Papers hal-04150233, HAL.
    12. Laurent Denant-Boemont & Matthieu Leprince & Matthieu Pourieux, 2019. "Distributive Preferences of Public Representatives: A Field-in-the-Lab Experiment," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2019-05-ccr, Condorcet Center for political Economy.
    13. Engel, Christoph & Goerg, Sebastian J., 2018. "If the worst comes to the worst: Dictator giving when recipient’s endowments are risky," European Economic Review, Elsevier, vol. 105(C), pages 51-70.
    14. Bäker, Agnes & Güth, Werner & Pull, Kerstin & Stadler, Manfred, 2015. "Three-person envy games: Experimental evidence and a stylized model," University of Tübingen Working Papers in Business and Economics 79, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    15. Grech, Philip D. & Nax, Heinrich H., 2020. "Rational altruism? On preference estimation and dictator game experiments," Games and Economic Behavior, Elsevier, vol. 119(C), pages 309-338.
    16. Bäker, Agnes & Güth, Werner & Pull, Kerstin & Stadler, Manfred, 2015. "The willingness to pay for partial vs. universal equality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 56(C), pages 55-61.
    17. Christine L. Exley & Judd B. Kessler, 2018. "Equity Concerns are Narrowly Framed," NBER Working Papers 25326, National Bureau of Economic Research, Inc.

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