Us and Them: Distributional Preferences in Small and Large Groups

Arbeitspapier

We analyze distributional preferences in games in which a decider chooses the provision of a good that benefits a receiver and creates costs for a group of payers. The average decider takes into account the welfare of all parties and has concerns for efficiency. However, she attaches similar weights to small and large groups so that she neglects large provision costs that are dispersed among many payers. This holds regardless of whether the decider benefits from the provision or not. A CES utility function which rationalizes average behavior implies altruism in bilateral situations and welfare-damaging actions when costs are dispersed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB/TR 15 Discussion Paper ; No. 453

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Public Economics: General
• Subject: Social Preferences ; Distribution Games ; Concentrated Benefits and Dispersed Costs

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schumacher, Heiner ; Kesternich, Iris ; Kosfeld, Michael ; Winter, Joachim
• Event: Veröffentlichung
• (who): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
• (where): München
• (when): 2014

Further information

• DOI: doi:10.5282/ubm/epub.18058
• Handle: http://hdl.handle.net/10419/94112
• URN: urn:nbn:de:bvb:19-epub-18058-8
• Last update: 10.03.2025, 11:42 AM CET