Process fairness, outcome fairness, and dynamic consistency

Experimental evidence for risk and ambiguity

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Literature on fairness preferences distinguishes between outcome fairness, concerning the final allocation of payoffs, and process fairness, concerning the expected allocation of payoffs. It is not obvious, however, whether process fairness can consistently be implemented. Once uncertainty is resolved and outcomes are determined, the ex-ante procedurally fair decision maker may become consequentialist ex-post, and reconsider her choice on the basis of the observed outcomes. We present experimental evidence on dynamic consistency of social preferences under both known risk and ambiguity. A significant share of people subscribe to process fairness both before and after the resolution of uncertainty.
Original languageEnglish
Pages (from-to)75-88
JournalJournal of Risk and Uncertainty
Volume53
Issue number2/3
DOIs
Publication statusPublished - Dec 2016

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Fairness
Dynamic consistency
Uncertainty
Social preferences
Decision maker

Keywords

  • procedural fairness
  • distributional fairness
  • process fairness
  • outcome fairness
  • dynamic consistency

Cite this

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title = "Process fairness, outcome fairness, and dynamic consistency: Experimental evidence for risk and ambiguity",
abstract = "Literature on fairness preferences distinguishes between outcome fairness, concerning the final allocation of payoffs, and process fairness, concerning the expected allocation of payoffs. It is not obvious, however, whether process fairness can consistently be implemented. Once uncertainty is resolved and outcomes are determined, the ex-ante procedurally fair decision maker may become consequentialist ex-post, and reconsider her choice on the basis of the observed outcomes. We present experimental evidence on dynamic consistency of social preferences under both known risk and ambiguity. A significant share of people subscribe to process fairness both before and after the resolution of uncertainty.",
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author = "Stefan Trautmann and {van de Kuilen}, Gijs",
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Process fairness, outcome fairness, and dynamic consistency : Experimental evidence for risk and ambiguity. / Trautmann, Stefan; van de Kuilen, Gijs.

In: Journal of Risk and Uncertainty, Vol. 53, No. 2/3, 12.2016, p. 75-88.

Research output: Contribution to journalArticleScientificpeer-review

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