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Fairness Under Risk: Insights from Dictator Games



1999) have typically used the assumption of ex ante known pie size. Here I explore theoretically the ramifications of pie size being unknown ex ante. Using a simple allocation problem known as dictator game, I find that attitude to fairness is systematically and intuitively related to risk and risk attitude. Results from informal experiments support the model proposed here

Topics: inequity aversion, dictator game, risk, expected utility, constant relative
Year: 2011
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