Social Preferences under Risk: Equality of Opportunity versus Equality of Outcome
- (pp. 3084-3101)
AbstractThis paper axiomatizes a utility function for social preferences under risk. In the model, a single parameter captures a preference for equality of opportunity (i.e., equality of exante expected payoffs) relative to equality of outcome (i.e., equality of ex-post payoffs). In a deterministic environment, the model reduces to the model of Fehr and Schmidt (1999). The model is consistent with recent experiments on probabilistic dictator games.
CitationSaito, Kota. 2013. "Social Preferences under Risk: Equality of Opportunity versus Equality of Outcome." American Economic Review, 103 (7): 3084-3101. DOI: 10.1257/aer.103.7.3084
- C72 Noncooperative Games
- D71 Social Choice; Clubs; Committees; Associations
- D81 Criteria for Decision-Making under Risk and Uncertainty