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Probabilistic social preference: how Machina’s Mom randomizes her choice

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  • Bin Miao

    (Shanghai University of Finance and Economics)

  • Songfa Zhong

    (National University of Singapore)

Abstract

We experimentally investigate preference for randomization in social settings, in which the dictator chooses probabilistically between two allocations for herself and an anonymous recipient. We observe substantial proportions of subjects choosing to randomize under various circumstances. The observed patterns have rich implications for various assumptions in social preference models and shed light on recent studies on ex-ante and ex-post social preferences.

Suggested Citation

  • Bin Miao & Songfa Zhong, 2018. "Probabilistic social preference: how Machina’s Mom randomizes her choice," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(1), pages 1-24, January.
    • Handle: RePEc:spr:joecth:v:65:y:2018:i:1:d:10.1007_s00199-016-1015-y
    DOI: 10.1007/s00199-016-1015-y
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    Cited by:

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    2. Schmidt, Robert J. & Trautmann, Stefan T., 2019. "Implementing (Un)fair Procedures? Favoritism and Process Fairness when Inequality is Inevitable," Other publications TiSEM 125472e2-51a2-4cf9-aab5-1, Tilburg University, School of Economics and Management.
    3. Qiyan Ong & Jianying Qiu, 2023. "Paying for randomization and indecisiveness," Journal of Risk and Uncertainty, Springer, vol. 67(1), pages 45-72, August.
    4. Mehmet S. Ismail & Ronald Peeters, 2023. "Social preferences and expected utility," Papers 2312.06048, arXiv.org.
    5. Nickolas Gagnon & Kristof Bosmans & Arno Riedl, 2020. "The Effect of Unfair Chances and Gender Discrimination on Labor Supply," CESifo Working Paper Series 8058, CESifo.
    6. repec:awi:wpaper:661 is not listed on IDEAS
    7. Yosuke Hashidate & Keisuke Yoshihara, 2021. "Stochastic Choice and Social Preferences: Inequity Aversion versus Shame Aversion," Working Papers e155, Tokyo Center for Economic Research.

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    More about this item

    Keywords

    Social preference; Risk preference; Ex-ante fairness; Ex-post fairness;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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