IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2013-029.html
   My bibliography  Save this paper

Change versus choice: eliciting attitudes to fair compensations

Author

Listed:
  • John Bone

    (University of York)

  • Paolo Crosetto

    (Max Planck Institute of Economics, Jena)

  • John D. Hey

    (University of York)

  • Carmen Pasca

    (University of York)

Abstract

This paper reports an experiment designed to elicit social preferences over income compensation schemes, where income differences between subjects have two independent components: one due to chosen effort and the other due to random chance. These differences can be compensated through social dividends, according to principles chosen beforehand by subjects themselves from behind a stylised Rawlsian veil of ignorance, or outside the society on which the principles will be implemented. We test the attractiveness in particular of Luck Egalitarianism, compensating inequalities due to chance but not those due to choice. We find modest but not overwhelming support for these principles, suggesting that subjects' actual preferences are more complex.

Suggested Citation

  • John Bone & Paolo Crosetto & John D. Hey & Carmen Pasca, 2013. "Change versus choice: eliciting attitudes to fair compensations," Jena Economic Research Papers 2013-029, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2013-029
    as

    Download full text from publisher

    File URL: http://www2.wiwi.uni-jena.de/Papers/jerp2013/wp_2013_029.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Schildberg-Hörisch, Hannah, 2010. "Is the veil of ignorance only a concept about risk? An experiment," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1062-1066, December.
    2. John Hey & Carmen Pasca, 2011. "On choosing a constitution (at least the part relating to the distribution of income)," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1213-1217.
    3. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
    4. Magnus Johannesson & Ulf-G Gerdtham, 1995. "A pilot test of using the veil of ignorance approach to estimate a social welfare function for income," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 400-402.
    5. Elisha A. Pazner & David Schmeidler, 1974. "A Difficulty in the Concept of Fairness," Review of Economic Studies, Oxford University Press, vol. 41(3), pages 441-443.
    6. 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 2261-2278, December.
    7. F. Carlsson & G. Gupta & O. Johansson-Stenman, 2003. "Choosing from behind a veil of ignorance in India," Applied Economics Letters, Taylor & Francis Journals, vol. 10(13), pages 825-827.
    8. Sutter, Matthias & Weck-Hannemann, Hannelore, 2003. "Taxation and the Veil of Ignorance--A Real Effort Experiment on the Laffer Curve," Public Choice, Springer, vol. 115(1-2), pages 217-240, April.
    9. Frignani, Nicola & Ponti, Giovanni, 2012. "Risk versus social preferences under the veil of ignorance," Economics Letters, Elsevier, vol. 116(2), pages 143-146.
    10. Fredrik Andersson & Carl Hampus Lyttkens, 1999. "Preferences for equity in health behind a veil of ignorance," Health Economics, John Wiley & Sons, Ltd., vol. 8(5), pages 369-378, August.
    11. Bukszar, Ed & Knetsch, Jack L, 1997. "Fragile Redistribution Choices behind a Veil of Ignorance," Journal of Risk and Uncertainty, Springer, vol. 14(1), pages 63-74, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leonardo Becchetti & Giacomo Degli Antoni & Stefania Ottone & Nazaria Solferino, 2011. "Spectators versus stakeholders with or without veil of ignorance: the difference it makes for justice and chosen distribution criteria," Econometica Working Papers wp31, Econometica.
    2. İbrahim Erdem SEÇİLMİŞ, 2014. "Seniority: A Blessing or A Curse? The Effect of Economics Training on the Perception of Distributive Justice," Sosyoekonomi Journal, Sosyoekonomi Society, issue 22(22).
    3. Johansson-Stenman, Olof & Carlsson, Fredrik & Daruvala, Dinky, 2001. "Measuring Hypothetical Grandparents Preferences For Equality And Relative Standings," Working Papers in Economics 42, University of Gothenburg, Department of Economics.
    4. Antoinette Baujard, 2016. "Welfare economics," Chapters, in: Gilbert Faccarello & Heinz D. Kurz (ed.), Handbook on the History of Economic Analysis Volume III, chapter 42, pages 611-624, Edward Elgar Publishing.
    5. Schildberg-Hörisch, Hannah, 2010. "Is the veil of ignorance only a concept about risk? An experiment," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1062-1066, December.
    6. Joshua Chen-Yuan Teng & Joseph Tao-yi Wang & C. C. Yang, 2020. "Justice, what money can buy: a lab experiment on primary social goods and the Rawlsian difference principle," Constitutional Political Economy, Springer, vol. 31(1), pages 45-69, March.
    7. José-Manuel Giménez-Gómez & Josep E. Peris, 2015. "Participation and Solidarity in Redistribution Mechanisms," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 9(1), pages 036-048, October.
    8. Darya V. Filatova & Sacha Bourgeois-Gironde & Jean Baratgin & Frank Jamet & Jing Shao, 2016. "Cycles of maximin and utilitarian policies under the veil of ignorance," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 15(1), pages 105-116, June.
    9. Anke Gerber & Andreas Nicklisch & Stefan Voigt, 2013. "Strategic Choices for Redistribution and the Veil of Ignorance: Theory and Experimental Evidence," CESifo Working Paper Series 4423, CESifo.
    10. Gerber, Anke & Nicklisch, Andreas & Voigt, Stefan, 2019. "The role of ignorance in the emergence of redistribution," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 239-261.
    11. Hansen, Fredrik & Anell, Anders & Gerdtham, Ulf-G & Lyttkens, Carl Hampus, 2013. "The Future of Health Economics: The Potential of Behavioral and Experimental Economics," Working Papers 2013:20, Lund University, Department of Economics.
    12. Chee Kian Leong, 2014. "The Prince and the Pauper: Fairness through Thick and Thin Veils of Ignorance," CESifo Working Paper Series 4918, CESifo.
    13. Leonardo Becchetti & Giacomo Degli Antoni & Stefania Ottone & Nazaria Solferino, 2012. "Spectators Versus Stakeholders with/without Information: the Difference it Makes for Justice," CEIS Research Paper 221, Tor Vergata University, CEIS, revised 20 Feb 2012.
    14. Fredrik Andersson & Carl Hampus Lyttkens, 1999. "Preferences for equity in health behind a veil of ignorance," Health Economics, John Wiley & Sons, Ltd., vol. 8(5), pages 369-378, August.
    15. Becchetti, Leonardo & Degli Antoni, Giacomo & Ottone, Stefania & Solferino, Nazaria, 2013. "Allocation criteria under task performance: The gendered preference for protection," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 96-111.
    16. Fleurbaey, Marc & Schokkaert, Erik, 2009. "Unfair inequalities in health and health care," Journal of Health Economics, Elsevier, vol. 28(1), pages 73-90, January.
    17. François Maniquet, 2017. "De chacun selon ses capacités à chacun selon ses besoins, ou (même) plus, s’il le souhaite," Revue économique, Presses de Sciences-Po, vol. 68(1), pages 119-129.
    18. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española / Review of Public Economics, IEF, vol. 200(1), pages 41-74, March.
    19. David Bjerk, 2016. "In front of and behind the veil of ignorance: an analysis of motivations for redistribution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(4), pages 791-824, December.
    20. Grégory Ponthière, 2020. "Pensions and social justice. From standard retirement to reverse retirement," Revue de l'OFCE, Presses de Sciences-Po, vol. 170(6), pages 193-226.

    More about this item

    Keywords

    chance; choice; envy-freeness; fairness; luck; luck egalitarianism; responsibility;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2013-029. 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: . General contact details of provider: http://www.wiwiss.uni-jena.de/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Markus Pasche (email available below). General contact details of provider: http://www.wiwiss.uni-jena.de/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.