- A model of procedural and distributive fairness
- Theory and Decision
- Volume | Issue number
- 70 | 1
- Pages (from-to)
- Document type
- Faculty of Economics and Business (FEB)
- Amsterdam School of Economics Research Institute (ASE-RI)
This article presents a new model aimed at predicting behavior in games
involving a randomized allocation procedure. It is designed to capture the relative
importance and interaction between procedural justice (defined crudely in terms of
the difference between one’s expected payoff and average expected payoff in the
group) and distributive justice (difference between own and average actual payoffs).
The model is applied to experimental games, including "randomized" variations of
simple sequential bargaining games, and delivers qualitatively correct predictions. In
viewof themodel redistribution of income can be seen as a substitute for vertical social
mobility. This contributes to the explanation of greater demand for redistribution in
European countries vis-a-vis the United States. I conclude with suggestions for further
verification of the model and possible extensions.
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