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Fairness and efficiency in a subjective claims problem

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  • Gantner, Anita
  • Kerschbamer, Rudolf

Abstract

In a subjective claims problem agents have conflicting perceptions on what constitutes a fair division of a jointly produced cake. In a large-scale experimental study involving a three-agent subjective claims problem, we compare the performance of four mechanisms which use agents’ reports on fair shares as input and yield a division of the cake (or less) as output. The mechanisms differ with respect to the desirable properties they possess and they are compared in terms of efficiency and perceived allocative and procedural fairness. Successful in terms of both fairness and efficiency are two mechanisms that explicitly ask for an assessment of the partners’ fair shares and that do not induce agents to exaggerate their assessment of the own fair share. One of the two successful mechanisms does not ask for an assessment of the own fair share while the other punishes overly selfish own claims.

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  • Gantner, Anita & Kerschbamer, Rudolf, 2016. "Fairness and efficiency in a subjective claims problem," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 21-36.
    • Handle: RePEc:eee:jeborg:v:131:y:2016:i:pa:p:21-36
    DOI: 10.1016/j.jebo.2016.07.019
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    Cited by:

    1. Gantner, Anita & Horn, Kristian & Kerschbamer, Rudolf, 2016. "Fair and efficient division through unanimity bargaining when claims are subjective," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 56-73.
    2. Rodriguez-Lara, Ismael, 2016. "Equity and bargaining power in ultimatum games," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 144-165.
    3. Gantner, Anita & Horn, Kristian & Kerschbamer, Rudolf, 2019. "The role of communication in fair division with subjective claims," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 72-89.
    4. Urs Fischbacher & Nadja Kairies-Schwarz & Ulrike Stefani, 2017. "Non-additivity and the Salience of Marginal Productivities: Experimental Evidence on Distributive Fairness," Economica, London School of Economics and Political Science, vol. 84(336), pages 587-610, October.
    5. Anita Gantner & Regine Oexl, 2023. "Respecting entitlements in legislative bargaining: A matter of preference or necessity?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 490-519, May.
    6. Konow, James & Saijo, Tatsuyoshi & Akai, Kenju, 2020. "Equity versus equality: Spectators, stakeholders and groups," Journal of Economic Psychology, Elsevier, vol. 77(C).
    7. Regine Oexl & Anita Gantner, 2021. "Respecting Entitlements in Legislative Bargaining - A Matter of Preference or Necessity?," Working Papers 2021-25, Faculty of Economics and Statistics, Universität Innsbruck.
    8. Bolton, Gary E. & Karagözoğlu, Emin, 2016. "On the influence of hard leverage in a soft leverage bargaining game: The importance of credible claims," Games and Economic Behavior, Elsevier, vol. 99(C), pages 164-179.

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    More about this item

    Keywords

    Fair division; Subjective claims; Experiment; Mechanisms;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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