Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments

S-Tier
Journal: American Economic Review
Year: 2004
Volume: 94
Issue: 4
Pages: 857-869

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We present simple one-shot distribution experiments comparing the relative importance of efficiency concerns, maximin preferences, and inequality aversion, as well as the relative performance of the fairness theories by Gary E Bolton and Axel Ockenfels and by Ernst Fehr and Klaus M. Schmidt. While the Fehr-Schmidt theory performs better in a direct comparison, this appears to be due to being in line with maximin preferences. More importantly, we find that a combination of efficiency concerns, maximin preferences, and selfishness can rationalize most of the data while the Bolton-Ockenfels and Fehr-Schmidt theories are unable to explain important patterns.

Technical Details

RePEc Handle
repec:aea:aecrev:v:94:y:2004:i:4:p:857-869
Journal Field
General
Author Count
2
Added to Database
2026-01-25