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.
Citation2013. "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