EconPapers    
Economics at your fingertips  
 

The Ethics of Incentivizing the Uninformed: A Vignette Study

Sandro Ambuehl and Axel Ockenfels

American Economic Review, 2017, vol. 107, issue 5, 91-95

Abstract: Our recent working paper (Ambuehl, Ockenfels, and Stewart 2017) shows theoretically and experimentally that people with higher costs of information processing respond more to an increase in the incentive for a complex transaction, and decide to participate based on a worse understanding of its consequences. Here, we address the resulting tradeoff between the principle of informed consent and the principle of free contract. Respondents to our vignette study on oocyte donation overwhelmingly favor the former and support policies that require donors to thoroughly understand the transaction. This finding helps design markets that are not only efficient but also considered ethical.

JEL-codes: D47 D83 D86 I18 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/aer.p20171109
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/articles?id=10.1257/aer.p20171109 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... wq3DpTtAwP37XQmz4q1T (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... IBWyTatISg9fYVMCLnL0 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... MsoQ6fO7CGU2iCtl5iWT (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:107:y:2017:i:5:p:91-95

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2018-06-15
Handle: RePEc:aea:aecrev:v:107:y:2017:i:5:p:91-95