HOW MANIPULABLE ARE FAIRNESS PERCEPTIONS? THE EFFECT OF ADDITIONAL ALTERNATIVES

Yoella Bereby-Meyer and Brit Grosskopf

A chapter in Inequality, Welfare and Income Distribution: Experimental Approaches, 2004, pp 43-53 from Emerald Group Publishing Limited

Abstract: In customer or labor markets raising prices or cutting wages is perceived as unfair if it results from the exploitation of shifts in demands. In a series of manipulations we show that adding an alternative to the original choice set alters the perception of fairness of the final outcome. Adding a worse alternative lowers the perception of unfairness, whereas adding a better alternative raises the perception of unfairness. These findings supplemented with existing experimental evidence cast doubt on purely outcome-based theories of fairness and suggest that fairness perceptions are highly manipulable.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:eme:reinzz:s1049-2585(04)11003-x

DOI: 10.1016/S1049-2585(04)11003-X

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