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Equity versus Equality: Spectators, Stakeholders and Groups

12th November 2019
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Authors: James Konow, Tatsuyoshi Saijo and Kenju Akai (Journal of Economic Psychology, 2020, Vol. 77, 102171)

Justice figures prominently in a wide variety of economically important contexts that involve both third parties and involved parties, e.g., in environmental regulation, international trade, and legal proceedings. The primary rivals for fairness rules over the distribution of a fixed good are equality and equity (i.e., allocations that are proportional to contributions). This paper reports the results of a dictator experiment in relation to a large variety of factors that might affect these rules, including performance on a real effort task, in-group identity, subject pools, allocative power, cultural orientation and demographic variables. We find impersonal third parties (i.e., Spectators) allocating anonymously for others favor equity. Subjects who share personal stakes anonymously with recipients (i.e., Stakeholders) allocate amounts between equity and equality. Stakeholders, who meet and communicate with their recipients (i.e., In-groups), allocate even more equally than anonymous stakeholders to their own recipients and behave more selfishly toward other subjects (i.e., Out-groups). These findings are robust with respect to subject pool, a measure of culture, and demographic variables, which seldom matter. We conclude that there is considerable agreement about these fairness rules, when parties are well informed, although there remain important differences across subject pools in the willingness to act on those rules.

 

Keywords: decision making for others, in-groups, equitiy, equality, fairness, real effort task

JEL: C91, D3, D63

 

DOI: https://doi.org/10.1016/j.joep.2019.05.001


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Project 1
Cross-cultural differences in the perception of corporate social responsibility and consumer social responsibility along global supply chains
Project 1
Experimental studies of moral responsibility in global supply chains
Project 1
Modelling economic and social dimensions of global supply chains
Project 1
Global supply chains, environmental regulation and green innovation

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Cross-cultural differences in the perception of corporate social responsibility and consumer social responsibility along global supply chains Experimental studies of moral responsibility in global supply chains
Modelling economic and social dimensions of global supply chains Global supply chains, environmental regulation and green innovation Further KCG Projects

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