Performance, Luck and Equality: An Experimental Analysis of Subjects’ Preferences for Different Allocation Criteria
Abstract
We perform an experimental analysis to investigate participants’ choices of allocative criteria under different conditions. We document that performance-based criteria guaranteeing a minimal egalitarian base are widely preferred by both neutral spectators and stakeholders without information on relative payoffs, although popularity among stakeholders is mostly due to self-interest considerations and optimism concerning their expected performance. Information regarding the distribution of payoffs under different criteria dramatically reduces such choice because the self-interest motive directly emerges, and most players opt to revise their decision in favor of the criterion maximizing their own payoff.
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Artikel in diesem Heft
- Research Article
- Do Firms with Low Disability Risks Opt Out from Public to Private Insurance?
- A Theory of Inefficient College Entry and Excessive Student Debt
- Editor Reputation and Journal Quality: The Case of Regional Economic Association Journals
- Performance, Luck and Equality: An Experimental Analysis of Subjects’ Preferences for Different Allocation Criteria
- Public Health Insurance with Monopolistically Competitive Providers and Optional Spot Sales
- Optimal Reimbursement Policy in Health Care: Competition, Ownership Structure and Quality Provision
- Effects of Minimum Wages on Absence from Work Due to Illness
- Warrantless Arrest Laws for Domestic Violence: How Are Youth Affected?
- Letter
- Is There Really a Trade-Off? Family Size and Investment in Child Quality in India
- Pay for Performance with Motivated Employees