How institutions shape individual motives for efficiency and equity: Evidence from distribution experiments

Stefan Ambec, Alexis Garapin, Laurent Muller () and Bilel Rahali
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Laurent Muller: GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]
Bilel Rahali: GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]

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Abstract: We investigate how institutions can shape differently the expression for efficiency and equity. We run four variants of the triple dictator game and the trust game in a within-subject design that enables to plot individual patterns. A veil of ignorance, a positional fee and information about others' behaviors are successively introduced to the two standard games. Alongside those treatments, we also control for individual preferences towards risk and other regarding preferences. Results show that while individuals demonstrate consistency in their preferences, the prospect of transfers in the trust game and the veil of ignorance increases efficiency and equity. Second, the option to choose their position as investor at some cost attracts the less cooperative players: they pay to be investor and keep more for themselves. Third, subjects who modify their investment decision after learning the average investment in their group tend to move closer to the average.

Keywords: trust game; triple dictator game; fairness efficiency; social dilemma equity (search for similar items in EconPapers)
Date: 2019-08
Note: View the original document on HAL open archive server: https://hal.science/hal-02166822v1
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Citations: View citations in EconPapers (4)

Published in Journal of Behavioral and Experimental Economics, 2019, 81 (August), pp.128-138. ⟨10.1016/j.socec.2019.06.005⟩

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Journal Article: How institutions shape individual motives for efficiency and equity: Evidence from distribution experiments (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02166822

DOI: 10.1016/j.socec.2019.06.005

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