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Are group members less inequality averse than individual decision makers?

Author

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  • Haoran He

    () (School of Economics and Business Administration - Beijing Normal University)

  • Marie Claire Villeval

    () (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

Abstract

We compare inequality aversion in individuals and teams by means of both within- and between-subject experimental designs, and we investigate how teams aggregate individual preferences. We find that team decisions reveal less inequality aversion than individual initial proposals in team decision-making. However, teams are no more selfish than individuals who decide in isolation. Individuals express strategically more inequality aversion in their initial proposals in team decision-making because they anticipate the selfishness of other members. Members with median social preferences drive team decisions. Finally, we show that social image has little influence because guilt and envy are almost similar in anonymous and non-anonymous interactions.

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  • Haoran He & Marie Claire Villeval, 2017. "Are group members less inequality averse than individual decision makers?," Post-Print halshs-00996545, HAL.
  • Handle: RePEc:hal:journl:halshs-00996545
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00996545v4
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    Cited by:

    1. Radu Vranceanu & Delphine Dubart, 2018. "Experimental evidence on deceitful communication: does everyone have a price ?," Working Papers hal-01822814, HAL.

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    Keywords

    social image; experiment; Team; inequity aversion; preference aggregation;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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