TY - JOUR
T1 - Testing the single-peakedness of other-regarding preferences
AU - Levati, Maria Vittoria
AU - Nicholas, Aaron James
AU - Rai, Birendra
PY - 2014
Y1 - 2014
N2 - We test an implication that is common to all prominent theories of outcome-based other-regarding preferences: the ordinal preference ranking of an agent over a finite number of alternatives lying on any straight line in the space of material payoffs to oneself and some other agent must be single-peaked or single-plateaued. An incentive compatible mechanism is used to elicit strict preference rankings of subjects over a finite set of alternatives in decision tasks based on dictator and trust games. Violations of single-peakedness range from a low of 19 to a high of 46 across the six main treatments. Other-regarding subjects violate single-peakedness significantly more often than self-regarding subjects. The presence of equal-split in the set of alternatives increases the number of violations. We argue that the violations cannot be explained by appealing to the relative ease of reporting certain rankings or as errors from the theoretical benchmark.
AB - We test an implication that is common to all prominent theories of outcome-based other-regarding preferences: the ordinal preference ranking of an agent over a finite number of alternatives lying on any straight line in the space of material payoffs to oneself and some other agent must be single-peaked or single-plateaued. An incentive compatible mechanism is used to elicit strict preference rankings of subjects over a finite set of alternatives in decision tasks based on dictator and trust games. Violations of single-peakedness range from a low of 19 to a high of 46 across the six main treatments. Other-regarding subjects violate single-peakedness significantly more often than self-regarding subjects. The presence of equal-split in the set of alternatives increases the number of violations. We argue that the violations cannot be explained by appealing to the relative ease of reporting certain rankings or as errors from the theoretical benchmark.
U2 - 10.1016/j.euroecorev.2014.01.001
DO - 10.1016/j.euroecorev.2014.01.001
M3 - Article
VL - 67
SP - 197
EP - 209
JO - European Economic Review
JF - European Economic Review
SN - 0014-2921
ER -