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On the fairness of random procedures

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  • Eliaz, Kfir
  • Rubinstein, Ariel

Abstract

We consider procedures that use randomness to make a decision that involves several individuals. We asked subjects to compare the fairness of six pairs of seemingly equivalent procedures. We propose a classification of subjects into two categories: those who are ‘‘emotional’’ in the sense that they exhibit a systematic ranking of procedures on the basis of intuitive notions of fairness, and those who are ‘‘consequentialists’’ in the sense that they systematically view each pair of procedures as being equally fair. According to this classification, about 30% of the subjects are emotional while 31% are consequentialists.

Suggested Citation

  • Eliaz, Kfir & Rubinstein, Ariel, 2014. "On the fairness of random procedures," Foerder Institute for Economic Research Working Papers 275831, Tel-Aviv University > Foerder Institute for Economic Research.
    • Handle: RePEc:ags:isfiwp:275831
    DOI: 10.22004/ag.econ.275831
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    References listed on IDEAS

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    1. repec:cup:judgdm:v:5:y:2010:i:2:p:83-101 is not listed on IDEAS
    2. Chlaß, Nadine & Güth, Werner & Miettinen, Topi, 2019. "Purely procedural preferences - Beyond procedural equity and reciprocity," European Journal of Political Economy, Elsevier, vol. 59(C), pages 108-128.
    3. Kreps, David M & Porteus, Evan L, 1978. "Temporal Resolution of Uncertainty and Dynamic Choice Theory," Econometrica, Econometric Society, vol. 46(1), pages 185-200, January.
    4. Gibbard, Allan, 1977. "Manipulation of Schemes That Mix Voting with Chance," Econometrica, Econometric Society, vol. 45(3), pages 665-681, April.
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    Cited by:

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    2. Khadjavi, Menusch & Tjaden, Jasper D., 2018. "Setting the bar - an experimental investigation of immigration requirements," Journal of Public Economics, Elsevier, vol. 165(C), pages 160-169.
    3. Randolph Sloof & Ferdinand von Siemens, 2015. "Decision Initiation, Decision Implementation, and the Allocation of Decision Rights," CESifo Working Paper Series 5509, CESifo.
    4. André Schmelzer, 2016. "Single versus Multiple Randomization in Matching Mechanisms," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2016_08, Max Planck Institute for Research on Collective Goods, revised Mar 2017.
    5. Jose P. Arrieta & Yash R. Shrestha, 2022. "On the strategic value of equifinal choice," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(2), pages 37-45, June.
    6. Christina Letsou & Shlomo Naeh & Uzi Segal, 2022. "All probabilities are equal, but some probabilities are more equal than others," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(2), pages 423-445, September.
    7. Dold, Malte & Khadjavi, Menusch, 2017. "Jumping the queue: An experiment on procedural preferences," Games and Economic Behavior, Elsevier, vol. 102(C), pages 127-137.
    8. Elias Bouacida & Renaud Foucart, 2022. "Rituals of Reason," Working Papers 344119591, Lancaster University Management School, Economics Department.

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    More about this item

    Keywords

    Financial Economics;

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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