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The Role of Equality and Equity in Social Preferences

Author

Listed:
  • Fehr, Ernst
  • Näf, Michael
  • Schmidt, Klaus M.

Abstract

Engelmann and Strobel (AER 2004) question the relevance of inequity aversion in simple dictator game experiments claiming that a combination of a preference for efficiency and a Rawlsian motive for helping the least well-off is more important than inequity aversion. We show that these results are partly based on a strong subject pool effect. The participants of the E&S experiments were undergraduate students of economics and business administration who self-selected into their field of study (economics) and learned in the first semester that efficiency is desirable. We show that for non-economists the preference for efficiency is much less pronounced. We also find a non-negligible gender effect indicating that women are more egalitarian than men. However, perhaps surprisingly, the dominance of equality over efficiency is unrelated to political attitudes.

Suggested Citation

  • Fehr, Ernst & Näf, Michael & Schmidt, Klaus M., 2005. "The Role of Equality and Equity in Social Preferences," Discussion Papers in Economics 725, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenec:725
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    File URL: https://epub.ub.uni-muenchen.de/725/1/Fehr-Naef-Schmidt_2005-Munich_Economics.pdf
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    More about this item

    Keywords

    Social Preferences; Inequity Aversion; Efficiency Preferences;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • 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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