State dependence in sequential equity judgements

Abstract

We report the results from a questionnaire-type experiment designed to elicit whether individuals decide in accordance with the equity axiom constituent for Rawls's second principle. The experiment is sequential in nature. Hence it generates panel data. We use recently developed panel data methods for studying the role that state dependence and unobservable individual-specific effects play for the observed equity judgements. The results indicate that a dominant share of our probants initially adhere to Hammond's equity axiom, but that many of these leave the Rawlsian position at later stages of the experiment. Although state dependence plays a significant role it cannot alone explain the observed decision behavior. Individual-specific effects are also important.

Seniority: A Blessing or A Curse? The Effect of Economics Training on the Perception of Distributive Justice

“…In addition, several scholars have been studied on the implementation of VOI in the laboratory (see, e.g., Beckman et al 2002;Carlsson et al 2003;Johannesson and Gerdtham 1995;Johansson-Stenman et al 2002;Traub et al 2009;Traub et al 2005). It is not only experimental studies that have contributed to our knowledge about distributive justice; but also survey/questionnaire studies yield this phenomenon (see, e.g., Amiel et al 2009;Bernasconi 2002;Bosmans and Schokkaert 2004;Faravelli 2007;Gaertner 1994;Gaertner and Jungeilges 2002;Gaertner et al 2001;Gaertner and Schokkaert 2011;Jungeilges and Theisen 2011).…”

“…However, S4 and S5 are used to analyze the differences in respondents' behavior for various situations. For this purpose, both S4 and S5 in which one might reasonably expect a social benefit from social state , are designed with an alternative state that establishes a preference which couldn't be perceived as a social pursuit (Jungeilges and Theisen 2011).…”