EconPapers    
Economics at your fingertips  
 

Fair share and social effciency: a mechanism in which peers decide on the payoff division

Lu Dong (), Rodney Falvey () and Shravan Luckraz ()

No 2016-10, Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham

Abstract: We propose and experimentally test a mechanism for a class of principal-agent problems in which agents can observe each others' efforts. In this mechanism each player costlessly assigns a share of the pie to each of the other players, after observing their contributions, and the final distribution is determined by these assignments. We show that cooperation can be achieved under this simple mechanism and, in a controlled laboratory experiment, we find that players use a proportional rule to reward others in most cases and that the players' contributions improve substantially and almost immediately with 80% of players contributing fully.

Keywords: mechanism design; experimental economics; fairness; distributive justice (search for similar items in EconPapers)
Date: 2016-10
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
https://www.nottingham.ac.uk/cedex/documents/paper ... on-paper-2016-10.pdf (application/pdf)

Related works:
Journal Article: Fair share and social efficiency: A mechanism in which peers decide on the payoff division (2019) Downloads
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:not:notcdx:2016-10

Access Statistics for this paper

More papers in Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Jose V Guinot Saporta ().

 
Page updated 2022-10-04
Handle: RePEc:not:notcdx:2016-10