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Fairness versus efficiency: how procedural fairness concerns affect coordination
University of Gothenburg.
University of Potsdam.
Linköping University, Department of Management and Engineering.ORCID iD: 0000-0003-3171-8640
2017 (English)In: Experimental Economics, ISSN 1386-4157, E-ISSN 1573-6938Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2017.
Keyword [en]
Coordination, Correlated Equilibrium, Recommendations, Procedural fairness, Volunteer's Dilemma, Experiment
National Category
Economics
Identifiers
URN: urn:nbn:se:liu:diva-140644DOI: 10.1007/s10683-017-9540-5OAI: oai:DiVA.org:liu-140644DiVA: diva2:1143196
Funder
Swedish Research Council Formas
Available from: 2017-09-20 Created: 2017-09-20 Last updated: 2017-10-10

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Posadzy, Kinga
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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf