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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 Economics Research Papers 2013-029, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2013-029
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2013/wp_2013_029.pdf
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    References listed on IDEAS

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    Cited by:

    1. Becchetti Leonardo & Antoni Giacomo Degli & Ottone Stefania & Solferino Nazaria, 2018. "Performance, Luck and Equality: An Experimental Analysis of Subjects’ Preferences for Different Allocation Criteria," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(1), pages 1-14, January.

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    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

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