Envy Freeness in Experimental Fair Division Problems |
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Authors: | Dorothea K Herreiner Clemens D Puppe |
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Institution: | (1) Department of Economics, Loyola Marymount University, 1 LMU Drive, Suite 4200, Los Angeles, CA 90045-2659, USA;(2) Department of Economics, University of Karlsruhe, 76128 Karlsruhe, Germany |
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Abstract: | Envy is sometimes suggested as an underlying motive in the assessment of different economic allocations. In the theoretical
literature on fair division, following Foley Foley, D. (1967), Yale Economic Essays, 7, 45–98], the term “envy” refers to an intrapersonal comparison of different consumption bundles. By contrast, in its everyday use “envy” involves interpersonal comparisons of well-being. We present, discuss results from free-form bargaining experiments on fair division problems
in which inter-and intrapersonal criteria can be distinguished. We find that interpersonal comparisons play the dominant role.
The effect of the intrapersonal criterion of envy freeness is limited to situations in which other fairness criteria are not
applicable.
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Keywords: | fairness envy freeness social preferences bargaining |
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