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Would The Right Social Preference Model Please Stand Up!

Author

Listed:
  • Daruvala, Dinky

    (Karlstad University)

Abstract
A number of competing social preference models have been developed inspired by the evidence from economic experiments. We test the relative performance of some of these models using an experimental design that is aimed at capturing pure distributional concerns in a multi-person setting. We find that the individuals in this study are heterogeneous and that they do not follow any single notion of fairness or inequality aversion. In addition, the results suggest that efficiency concerns are not confined to students of economics but are important to students of all disciplines.

Suggested Citation

  • Daruvala, Dinky, 2006. "Would The Right Social Preference Model Please Stand Up!," Working Papers in Economics 210, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0210
    as

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    File URL: http://hdl.handle.net/2077/2705
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    References listed on IDEAS

    as
    1. Guth, Werner & Kliemt, Hartmut & Ockenfels, Axel, 2003. "Fairness versus efficiency: An experimental study of (mutual) gift giving," Journal of Economic Behavior & Organization, Elsevier, vol. 50(4), pages 465-475, April.
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    5. Charness, Gary & Rabin, Matthew, 2002. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt3d04q5sm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    6. Ernst Fehr & Klaus M. Schmidt, "undated". "The Role of Equality, Efficiency, and Rawlsian Motives in Social Preferences: A Reply to Engelmann and Strobel," IEW - Working Papers 179, Institute for Empirical Research in Economics - University of Zurich.
    7. Fehr, Ernst & Naef, Michael & Schmidt, Klaus M., 2004. "The Role of Equality and Efficiency in Social Preferences," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 30, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    8. John Kagel & Katherine Wolfe, 2001. "Tests of Fairness Models Based on Equity Considerations in a Three-Person Ultimatum Game," Experimental Economics, Springer;Economic Science Association, vol. 4(3), pages 203-219, December.
    9. Fréchette, Guillaume R. & Kagel, John H. & Lehrer, Steven F., 2003. "Bargaining in Legislatures: An Experimental Investigation of Open versus Closed Amendment Rules," American Political Science Review, Cambridge University Press, vol. 97(2), pages 221-232, May.
    10. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
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    12. Kritikos, Alexander & Bolle, Friedel, 2001. "Distributional concerns: equity- or efficiency-oriented?," Economics Letters, Elsevier, vol. 73(3), pages 333-338, December.
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    More about this item

    Keywords

    Difference Aversion; Efficiency; Inequality Aversion; Maximin Criterion; Social Preferences;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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