American Economic Review Vol. 103 No. 7 2013
Social Preferences under Risk: Equality of Opportunity versus Equality of Outcome
Abstract
This 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.
- DOI
- 10.1257/aer.103.7.3084
- Volume
- 103
- Issue
- 7
- Pages
- 3084-3101
- Language
- en
- Sources
- bibtex:phds-export.bib crossref openalex