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Revealed Notions of Distributive Justice I: Theory

Author

Listed:
  • Nicole Becker

    (TU Dortmund University and Ruhr Graduate School in Economics)

  • Kirsten Häger

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Jan Heufer

    (TU Dortmund University)

Abstract

We provide a framework to decompose preferences into a notion of distributive justice and a selfishness part and to recover individual notions of distributive justice from data collected in appropriately designed experiments. "Dictator games" with varying transfer rates used in Andreoni and Miller (2002) and Fisman et al. (2007) can be used to assess individuals' preferences, but - with the help of simple new axioms - also to recover some part of individuals' notion of justice. "Social planner" experiments or experiments under a "veil of ignorance" (Rawls 1971) can be used to recover larger parts of the notion of justice. The axioms also allow a simple test for the validity of such an experimental approach, which is not necessarily incentive-compatible, and to recover a greater part of an individual's preference relation in dictator experiments than before. Interpersonal comparison of the individual intensity of justice (or fairness) similar to the suggestions in Karni and Safra (2002b) are possible, and we can evaluate the intensity based on an individual's own notion of justice. The approach is kept completely non-parametric. As such, this article is in the spirit of Varian (1982) and Karni and Safra (2002a).

Suggested Citation

  • Nicole Becker & Kirsten Häger & Jan Heufer, 2013. "Revealed Notions of Distributive Justice I: Theory," Jena Economics Research Papers 2013-041, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2013-041
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2013/wp_2013_041.pdf
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    Citations

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    Cited by:

    1. Matej Opatrny, 2018. "Extent of Irrationality of the Consumer: Combining the Critical Cost Eciency and Houtman Maks Indices," Working Papers IES 2018/11, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2018.
    2. Jan Heufer & Per Hjertstrand, 2015. "Homothetic Efficiency and Test Power: A Non-Parametric Approach," Tinbergen Institute Discussion Papers 15-064/I, Tinbergen Institute.
    3. Jan (J.P.M.) Heufer & Jason Shachat & Yan Xu, 2018. "Measuring tastes for equity and aggregate wealth behind the veil of ignorance," Tinbergen Institute Discussion Papers 18-087/I, Tinbergen Institute.

    More about this item

    Keywords

    Altruism; Distributive Justice; Non- parametric Analysis; Preference De- composition; Revealed Preference; So- cial Preferences;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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