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Fair Processes for Societal Decisions Involving Distributional Inequalities

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  • L. Robin Keller
  • Rakesh K. Sarin

Abstract

We investigate fair processes for societal decisions that involve different risks and benefits to different groups. A fair decision‐making process is particularly important for decisions such as siting hazardous facilities. We experimentally evaluate the impact of alternative decision processes on the final choice of hypothetical facility sites and the resulting benefit and risk distribution to groups. The experimental task required choice among many alternative sites for a hazardous facility. Sites differ by the distribution of risks and benefits to each of two communities, and in the attractiveness of the sites to each community. Subjects were divided into three groups: individuals who judged the best site in the role of arbitrators, pairs of negotiators with one person representing each of the two communities, and trios who identified the best site in the role of a siting jury. We found the choices of negotiating and siting jury groups tended to emphasize the communities’preferences compared to the individual arbitrators who tended to focus on balancing the distribution of risks and benefits. Also, undergraduate psychology students, regardless of the dispute resolution mechanism, tended to display more emphasis on the risks and benefits, and graduate business students tended to focus more on the communities’preferences.

Suggested Citation

  • L. Robin Keller & Rakesh K. Sarin, 1995. "Fair Processes for Societal Decisions Involving Distributional Inequalities," Risk Analysis, John Wiley & Sons, vol. 15(1), pages 49-59, February.
    • Handle: RePEc:wly:riskan:v:15:y:1995:i:1:p:49-59
    DOI: 10.1111/j.1539-6924.1995.tb00092.x
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    References listed on IDEAS

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    1. Peter C. Fishburn & Rakesh K. Sarin, 1991. "Dispersive Equity and Social Risk," Management Science, INFORMS, vol. 37(7), pages 751-769, July.
    2. Kunreuther, Howard & Kleindorfer, Paul R, 1986. "A Sealed-Bid Auction Mechanism for Siting Noxious Facilities," American Economic Review, American Economic Association, vol. 76(2), pages 295-299, May.
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    9. John Broome, 1982. "Technical Note—Equity in Risk Bearing," Operations Research, INFORMS, vol. 30(2), pages 412-414, April.
    10. Peter C. Fishburn & Rakesh K. Sarin, 1994. "Fairness and Social Risk I: Unaggregated Analyses," Management Science, INFORMS, vol. 40(9), pages 1174-1188, September.
    11. Jonathan Baron & Rajeev Gowda & Howard Kunreuther, 1993. "Attitudes Toward Managing Hazardous Waste: What Should Be Cleaned Up and Who Should Pay for It?," Risk Analysis, John Wiley & Sons, vol. 13(2), pages 183-192, April.
    12. L. Robin Keller & Rakesh K. Sarin, 1988. "Equity in Social Risk: Some Empirical Observations," Risk Analysis, John Wiley & Sons, vol. 8(1), pages 135-146, March.
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    Cited by:

    1. Guyse, Jeffery L. & Keller, L. Robin & Eppel, Thomas, 2002. "Valuing Environmental Outcomes: Preferences for Constant or Improving Sequences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 87(2), pages 253-277, March.
    2. Wen‐Qiang Bian & L. Robin Keller, 1999. "Chinese and Americans Agree on What Is Fair, but Disagree on What Is Best in Societal Decisions Affecting Health and Safety Risks," Risk Analysis, John Wiley & Sons, vol. 19(3), pages 439-452, June.
    3. Martin Peterson, 2002. "The Limits of Catastrophe Aversion," Risk Analysis, John Wiley & Sons, vol. 22(3), pages 527-538, June.
    4. Thibault Gajdos & John Weymark & Claudio Zoli, 2010. "Shared destinies and the measurement of social risk equity," Annals of Operations Research, Springer, vol. 176(1), pages 409-424, April.

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