|
| |
| Yosuke Hashidate and Keisuke Yoshihara |
| |
| ''Stochastic Expected Inequity-Averse Choice'' |
| ( 2021, Vol. 41 No.3 ) |
| |
| |
| This note studies stochastic inequity-averse choice behavior, capturing ex-post fairness and ex-ante fairness. By studying deliberate randomization, we characterize the stochastic choice behavior stemming from Saito [Social Preferences under Risk: Equality of Opportunity versus Equality of Outcome, American Economic Review, 103 (7): 3084-3101]. We find that the violations of first order stochastic dominance (FOSD) and Regularity occur, and that ex-ante fairness can lead to preference reversal phenomena. |
| |
| |
| Keywords: Inequity Aversion, Ex-Ante Fairness, Ex-Post Fairness, Deliberate Randomization. |
JEL: D8 - Information, Knowledge, and Uncertainty: General
C7 - Game Theory and Bargaining Theory |
| |
| Manuscript Received : Mar 22 2021 | | Manuscript Accepted : Sep 17 2021 |
|
