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Purely Procedural Preferences - Beyond Procedural Equity and Reciprocity

Author

Listed:
  • Nadine Chlaß

    (Friedrich Schiller University Jena, Germany)

  • Werner Güth

    (Max Planck Institute of Economics, Jena, Germany)

  • Topi Miettinen

    (SITE Stockholm School of Economics, Sweden.)

Abstract

We conduct experiments in which parties face a pair of two-player pie-splitting procedures. Parties submit their strategy in each, their beliefs about their opponent's choices, and are also asked whether they prefer one procedure over the other. The procedures - a yes-no game, an ultimatum game, and a dictator game - are designed such that by all existing economic preference models, whether distributive or procedural, parties should be indifferent between them. In particular, the procedures should yield the same outcomes, the same expected outcomes and carry the same information on parties' intentions. At the same time, the procedures differ in the way they distribute decision and information rights across players, and also in their complexity and efficiency. Experimentally, parties do indeed still reveal preferences over the procedures at hand. To explore why this happens, we elicit individuals' simplicity and efficiency ratings of the procedures, and also the degree by which individuals invoke the equality of basic rights and liberties in their moral judgement - an ethical criterion not yet captured by any preference model. The preferences we find link to this data. We explore formalizations for such preferences.

Suggested Citation

  • Nadine Chlaß & Werner Güth & Topi Miettinen, 2009. "Purely Procedural Preferences - Beyond Procedural Equity and Reciprocity," Jena Economics Research Papers 2009-069, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2009-069
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    Cited by:

    1. Chlaß, Nadine & Riener, Gerhard, 2015. "Lying, Spying, Sabotaging -- Balancing Means and Aims --," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113222, Verein für Socialpolitik / German Economic Association.
    2. Nadine Chlaß & Lata Gangadharan & Kristy Jones, 2023. "Charitable giving and intermediation: a principal agent problem with hidden prices," Oxford Economic Papers, Oxford University Press, vol. 75(4), pages 941-961.
    3. Justin Buffat & Matthias Praxmarer & Matthias Sutter, 2020. "The Intrinsic Value of Decision Rights: A Note on Team vs Individual Decision-Making," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2020_30, Max Planck Institute for Behavioral Economics.
    4. Sugden, Robert & Wang, Mengjie, 2020. "Equality of opportunity and the acceptability of outcome inequality," European Economic Review, Elsevier, vol. 130(C).
    5. Sausgruber, Rupert & Tyran, Jean-Robert, 2014. "Discriminatory taxes are unpopular—Even when they are efficient and distributionally fair," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 463-476.
    6. Güth, Werner, 2014. "Endogenous community formation and collective provision – A procedurally fair mechanism," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 389-395.
    7. Chlaß, Nadine & Riener, Gerhard, 2015. "Lying, spying, sabotaging : procedures and consequences," Working Papers 15-17, University of Mannheim, Department of Economics.
    8. Eliaz, Kfir & Rubinstein, Ariel, 2014. "On the fairness of random procedures," Economics Letters, Elsevier, vol. 123(2), pages 168-170.
    9. Nadine Chlass & Peter G. Moffatt, 2017. "Giving in dictator games: Experimenter demand effect or preference over the rules of the game?," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 17-05, School of Economics, University of East Anglia, Norwich, UK..
    10. Randolph Sloof & Ferdinand von Siemens, 2015. "Decision Initiation, Decision Implementation, and the Allocation of Decision Rights," CESifo Working Paper Series 5509, CESifo.
    11. André Schmelzer, 2016. "Single versus Multiple Randomization in Matching Mechanisms," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2016_08, Max Planck Institute for Behavioral Economics, revised Mar 2017.
    12. Nadine Chlaß & Lata Gangadharan & Kristy Jones, 2015. "Charitable giving and intermediation," Jena Economics Research Papers 2015-021, Friedrich-Schiller-University Jena.
    13. Werner Güth & M. Vittoria Levati & Matteo Ploner, 2013. "Does Procedural Fairness Crowd Out Other-Regarding Concerns? A Bidding Experiment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(3), pages 433-450, September.
    14. Staněk, Rostislav & Krčál, Ondřej & Čellárová, Katarína, 2022. "Pull yourself up by your bootstraps: Identifying procedural preferences against helping others in the presence of moral hazard," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    15. Li Jiang & Jiangwei Xu, 2023. "Cost‐sharing procurement contracts with embedded reciprocal behavior," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(5), pages 2948-2954, July.
    16. Mertins Vanessa & Albert Max, 2015. "Does Participation Increase Outcome Acceptance? Evidence from a Power-to-take Experiment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(6), pages 584-607, December.
    17. Dold, Malte & Khadjavi, Menusch, 2017. "Jumping the queue: An experiment on procedural preferences," Games and Economic Behavior, Elsevier, vol. 102(C), pages 127-137.

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    Keywords

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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