Equity concerns are narrowly framed
By: Exley, Christine L. and Kessler, Judd B
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Material type: 
BookPublisher: American Economic Journal: Microeconomics Description: 16(2). May, 2024: p.147-179.Subject(s): Distributional decisions, Equity concerns, Fairness preferences, Payoff components, Experimental economics, Decision framing, Behavioral economics, Token valuation, Tax policy, Worker compensation, Narrow fairness, Contextual framing, Income distribution, Economic behavior, Preference application, Microeconomic analysis, Incentive structure, Social preferences, Component-based decisions, Framing effect
In:
American Economic Journal: MicroeconomicsSummary: Distributional decisions regularly involve multiple payoff components. In a series of experiments, we show that individuals sometimes exhibit narrow equity concerns: applying fairness preferences narrowly on a specific component of payoffs rather than on broader payoff consequences. This behavior results in different distributional decisions depending on which payoff component we frame individuals to consider. We document narrow equity concerns in an exceedingly simple setting—in which payoff components are tokens worth $0.01 and $0.02—and in context-rich applications including tax policy and worker compensation.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mic.20220266
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Articles
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Indian Institute of Public Administration | 16(2). May, 2024: p.147-179 | Available | AR132575 |
Distributional decisions regularly involve multiple payoff components. In a series of experiments, we show that individuals sometimes exhibit narrow equity concerns: applying fairness preferences narrowly on a specific component of payoffs rather than on broader payoff consequences. This behavior results in different distributional decisions depending on which payoff component we frame individuals to consider. We document narrow equity concerns in an exceedingly simple setting—in which payoff components are tokens worth $0.01 and $0.02—and in context-rich applications including tax policy and worker compensation.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mic.20220266
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