Arbeitspapier
The generosity effect: Fairness in sharing gains and losses
We explore the interaction between fairness attitudes and reference dependence both theoretically and experimentally. Our theory of fairness behavior under reference-dependent preferences in the context of ultimatum games, defines fairness in the utility domain and not in the domain of dollar payments. We test our model predictions using a within-subject design with ultimatum and dictator games involving gains and losses of varying amounts. Proposers indicated their offer in gain- and (neatly comparable) loss- games; responders indicated minimum acceptable gain and maximum acceptable loss. We find a significant generosity effect in the loss domain: on average, proposers bear the largest share of losses as if anticipating responders' call for a smaller share. In contrast, reference dependence hardly affects the outcome of dictator games -where responders have no veto right- though we detect a small but significant compassion effect, whereby dictators are on average somewhat more generous sharing losses than sharing gains.
- Language
-
Englisch
- Bibliographic citation
-
Series: ESMT Working Paper ; No. 13-08
- Classification
-
Management
Criteria for Decision-Making under Risk and Uncertainty
- Subject
-
Fairness
loss domain
ultimatum game
dictator game
referencedependent preferences
social preferences
- Event
-
Geistige Schöpfung
- (who)
-
Baquero, Guillermo
Smit, Willem
Wathieu, Luc
- Event
-
Veröffentlichung
- (who)
-
European School of Management and Technology (ESMT)
- (where)
-
Berlin
- (when)
-
2013
- Handle
- URN
-
urn:nbn:de:101:1-2013091111545
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Baquero, Guillermo
- Smit, Willem
- Wathieu, Luc
- European School of Management and Technology (ESMT)
Time of origin
- 2013
Other Objects (12)
The generosity effect: Fairness in sharing gains and losses
Coordination after gains and losses
Losses and gains in social dilemmas
Generosity
Redistributive Politics, Power Sharing and Fairness
Perceptual gains and losses in synesthesia and schizophrenia
Vicarious generosity
Code-sharing, price discrimination and welfare losses
Outcome presence and regulatory fit: Competing explanations for the advantage of gains and losses over non‐gains and non‐losses
Conditional Generosity and Deservingness in Public Support for European Unemployment Risk Sharing
Generosity between generations, or : the generations of generosity
The Feasible Gains from International Risk Sharing
The generosity effect: Fairness in sharing gains and losses
Coordination after gains and losses
Losses and gains in social dilemmas
Generosity
Redistributive Politics, Power Sharing and Fairness
Perceptual gains and losses in synesthesia and schizophrenia
Vicarious generosity
Code-sharing, price discrimination and welfare losses
Outcome presence and regulatory fit: Competing explanations for the advantage of gains and losses over non‐gains and non‐losses
Conditional Generosity and Deservingness in Public Support for European Unemployment Risk Sharing
Generosity between generations, or : the generations of generosity
The Feasible Gains from International Risk Sharing
The generosity effect: Fairness in sharing gains and losses
Coordination after gains and losses
Losses and gains in social dilemmas
Generosity
Redistributive Politics, Power Sharing and Fairness
Perceptual gains and losses in synesthesia and schizophrenia
Vicarious generosity
Code-sharing, price discrimination and welfare losses
Outcome presence and regulatory fit: Competing explanations for the advantage of gains and losses over non‐gains and non‐losses
Conditional Generosity and Deservingness in Public Support for European Unemployment Risk Sharing
Generosity between generations, or : the generations of generosity