Fairness versus efficiency
- We investigate in a laboratory experiment whether procedural fairness concerns affect how well individuals are able to solve a coordination problem in a two-player Volunteer’s Dilemma. Subjects receive external action recommendations, either to volunteer or to abstain from it, in order to facilitate coordination and improve efficiency. We manipulate the fairness of the recommendation procedure by varying the probabilities of receiving the disadvantageous recommendation to volunteer between players. We find evidence that while recommendations improve overall efficiency regardless of their implications for expected payoffs, there are behavioural asymmetries depending on the recommendation: advantageous recommendations are followed less frequently than disadvantageous ones and beliefs about others’ actions are more pessimistic in the treatment with recommendations inducing unequal expected payoffs.
Author details: | Verena Kurz, Andreas OrlandORCiDGND, Kinga PosadzyORCiD |
---|---|
DOI: | https://doi.org/10.1007/s10683-017-9540-5 |
ISSN: | 1386-4157 |
ISSN: | 1573-6938 |
Title of parent work (English): | Experimental Economics |
Subtitle (English): | how procedural fairness concerns affect coordination |
Publisher: | Springer |
Place of publishing: | Dordrecht |
Publication type: | Article |
Language: | English |
Date of first publication: | 2017/09/04 |
Publication year: | 2018 |
Release date: | 2021/10/11 |
Tag: | Coordination; Correlated equilibrium; Procedural; Recommendations |
Volume: | 21 |
Issue: | 3 |
Number of pages: | 26 |
First page: | 601 |
Last Page: | 626 |
Funding institution: | Svenska Forskningsradet Formas through the program Human Cooperation to Manage Natural Resources (COMMONS) |
Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften / Fachgruppe Betriebswirtschaftslehre |
DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
License (German): | CC-BY - Namensnennung 4.0 International |