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Fairness Through the Lens of Cooperative Game Theory: An Experimental Approach

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  • Geoffroy De Clippel
  • Kareen Rozen

Abstract

We experimentally investigate how impartial observers allocate money to agents whose complementarity and substitutability determine the surplus each group can achieve. Analyzing the data through the lens of axioms and solutions from cooperative-game theory, a oneparameter model (mixing equal split and Shapley value) arises as a parsimonious description of the data. Three treatments establish the robustness of this qualitative conclusion, while also illustrating how context may impact the parameter estimate.
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  • Geoffroy De Clippel & Kareen Rozen, 2014. "Fairness Through the Lens of Cooperative Game Theory: An Experimental Approach," Levine's Working Paper Archive 786969000000000904, David K. Levine.
  • Handle: RePEc:cla:levarc:786969000000000904
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    Cited by:

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    2. Aguiar, Victor H. & Pongou, Roland & Tondji, Jean-Baptiste, 2018. "A non-parametric approach to testing the axioms of the Shapley value with limited data," Games and Economic Behavior, Elsevier, vol. 111(C), pages 41-63.
    3. Victor Aguiar & Roland Pongou & Jean-Baptiste Tondji, 2016. "Measuring and Decomposing the Distance to the Shapley Wage Function with Limited Data," Working Papers 1613e, University of Ottawa, Department of Economics.
    4. Bryan, Gharad & de Quidt, Jonathan & Wilkening, Tom & Yadav, Nitin, 2017. "Land Trade and Development: A Market Design Approach," CEPR Discussion Papers 12136, C.E.P.R. Discussion Papers.

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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