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Implementing (Un)fair Procedures? Favoritism and Process Fairness when Inequality is Inevitable

Author

Listed:
  • Schmidt, Robert J.
  • Trautmann, Stefan T.

    (Tilburg University, School of Economics and Management)

Abstract

We study allocation behavior when outcome inequality is inevitable but a fair process is feasible, as in selecting one person from several candidates for a job or award. We show that allocators may be influenced by inappropriate criteria, impeding the implementation of a fair process. We study four interventions to induce process fairness without restricting the allocator’s decisions: Increasing the transparency of the allocation process; providing a private randomization device; allowing the allocator to delegate to a public randomization device; and allowing the allocator to avoid information on inappropriate criteria. All interventions except transparency have positive effects, but differ substantially in their impact.
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Suggested Citation

  • 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.
    • Handle: RePEc:tiu:tiutis:125472e2-51a2-4cf9-aab5-151900dd6632
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    References listed on IDEAS

    as
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    Cited by:

    1. 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

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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