Social vs. risk preferences under the veil of ignorance
This paper reports experimental evidence from a Dictator Game experiment in which subjects choose repeatedly one out of four options involving a pair of fixed monetary prizes, one for them, one for another anonymously matched subject. In some sessions, player position (i.e. the identity of the best paid agent, constant across all options) is known in advance before subjects have to make their decision; in other sessions subjects choose “under the veil of ignorance”, not knowing to which player position they will be eventually assigned. We also collect evidence from additional sessions in which the same options correspond to binary lotteries, in which subjects may win the high or the low prize, but their decisions do not affect other participants. We frame subjects’ decisions within the realm of a simple mean-variance utility maximization problem, where the parameter associated to the variance is interpreted, depending on the treatment conditions, as a measure of pure risk aversion, pure inequality aversion, or some combination of the two. We also condition our estimates to subjects’ individual socio-demographic characteristics.
|Date of creation:||Mar 2011|
|Date of revision:|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: C/ Guardia Civil, 22, Esc 2a, 1o, E-46020 VALENCIA|
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Antonio Cabrales & Raffaele Miniaci & Marco Piovesan & Giovanni Ponti, 2010.
"Social Preferences and Strategic Uncertainty: An Experiment on Markets and Contracts,"
American Economic Review,
American Economic Association, vol. 100(5), pages 2261-78, December.
- Antonio Cabrales & Raffaele Miniaci & Marco Piovesan & Giovanni Ponti, 2008. "Social Preferences and Strategic Uncertainty: An Experiment on Markets and Contracts," Discussion Papers 08-06, University of Copenhagen. Department of Economics.
- Antonio Cabrales & Raffaele Miniaci & Marco Piovesan & Giovanni Ponti, 2009. "Social Preferences and Strategic Uncertainty: An Experiment on Markets and Contracts," Working Papers 2009-09, FEDEA.
- Binmore, Ken & McCarthy, John & Ponti, Giovanni & Samuelson, Larry & Shaked, Avner, 2002.
"A Backward Induction Experiment,"
Journal of Economic Theory,
Elsevier, vol. 104(1), pages 48-88, May.
- Edi Karni & Tim Salmon & Barry Sopher, 2008.
"Individual sense of fairness: an experimental study,"
Springer, vol. 11(2), pages 174-189, June.
- Barry Sopher & Edi Karni & Tim Salmon, 2001. "Individual Sense of Fairness: An Experimental Study," Departmental Working Papers 200107, Rutgers University, Department of Economics.
- Amiel, Yoram & Creedy, John & Hurn, Stan, 1999. " Measuring Attitudes towards Inequality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(1), pages 83-96, March.
- Steffen Andersen & Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2008. "Eliciting Risk and Time Preferences," Econometrica, Econometric Society, vol. 76(3), pages 583-618, 05.
- Glenn W. Harrison & Tanga McDaniel, 2008. "Voting games and computational complexity," Oxford Economic Papers, Oxford University Press, vol. 60(3), pages 546-565, July.
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2011-07. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición)
If references are entirely missing, you can add them using this form.