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Revealed Normative Principles

Author

Listed:
  • Cappelen, Alexander W.

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Kariv, Shachar

    (Dept. of Economics, University of California, Berkeley)

  • Kimbrough, Erik O.

    (Smith Institute for Political Economy and Philosophy, Chapman University)

  • Sørensen, Erik Ø.

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Tungodden, Bertil

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Zame, William R.

    (Dept. of Economics, University of California, Los Angeles)

Abstract

When decision-makers allocate resources between anonymous others, with their own payoffs held constant, own-payoff utility maximization places no restriction on behavior; consistent structure in choices therefore reveals a normative principle. We employ a graphical budget line design to elicit allocations of real money between two anonymous others across many budget sets that vary the relative prices of redistribution. Choices overwhelmingly satisfy the axioms of rational choice, revealing individual normative principles. Subjects reveal a widely shared principle of impartiality (symmetric treatment of the two recipients) but hold heterogeneous views about the best symmetric allocation, ranging from Rawlsian equality to utilitarian efficiency.

Suggested Citation

  • Cappelen, Alexander W. & Kariv, Shachar & Kimbrough, Erik O. & Sørensen, Erik Ø. & Tungodden, Bertil & Zame, William R., 2026. "Revealed Normative Principles," Discussion Paper Series in Economics 12/2026, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2026_012
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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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