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Project Citation: 

Ho, Teck-Hua, and Su, Xuanming. Replication data for: Peer-Induced Fairness in Games. Nashville, TN: American Economic Association [publisher], 2009. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113342V1

Project Description

Summary:  View help for Summary People exhibit peer-induced fairness concerns when they look to their peers as a reference to evaluate their endowments. We analyze two independent ultimatum games played sequentially by a leader and two followers. With peer-induced fairness, the second follower is averse to receiving less than the first follower. Using laboratory experimental data, we estimate that peer-induced fairness between followers is two times stronger than distributional fairness between leader and follower. Allowing for heterogeneity, we find that 50 percent of subjects are fairness-minded. We discuss how peer-induced fairness might limit price discrimination, account for low variability in CEO compensation, and explain pattern bargaining. (JEL C72, D63 )

Scope of Project

JEL Classification:  View help for JEL Classification
      C72 Noncooperative Games
      D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement


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