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Fairness has less impact when agents are less informed

Author

Listed:
  • Jennie Huang

    (The Wharton School, University of Pennsylvania)

  • Judd B. Kessler

    (University of Pennsylvania)

  • Muriel Niederle

    (Stanford University)

Abstract

Research from the last four decades suggests that fairness plays an important role in economic transactions. However, the vast majority of this research investigates behavior in an environment where agents are fully informed. We develop a new experimental paradigm—nesting the widely used ultimatum game—and find that fairness has less impact on outcomes when agents are less informed. As we remove information, offers become less generous and unfair offers are more likely to be accepted.

Suggested Citation

  • Jennie Huang & Judd B. Kessler & Muriel Niederle, 2024. "Fairness has less impact when agents are less informed," Experimental Economics, Springer;Economic Science Association, vol. 27(1), pages 155-174, March.
    • Handle: RePEc:kap:expeco:v:27:y:2024:i:1:d:10.1007_s10683-023-09795-w
    DOI: 10.1007/s10683-023-09795-w
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    More about this item

    Keywords

    Fairness; Ultimatum game; Information; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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