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Using Visual and Narrative Methods to Achieve Fair Process in Clinical Care
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Fairness versus efficiency: how procedural fairness concerns affect coordination.

Verena Kurz1, Andreas Orland2, Kinga Posadzy3

  • 11School of Business, Economics and Law, Department of Economics, University of Gothenburg, 405 30 Gothenburg, Sweden.

Experimental Economics
|August 14, 2018
PubMed
Summary
This summary is machine-generated.

Procedural fairness impacts cooperation in the Volunteer's Dilemma. Unfair recommendations led to behavioral differences, with disadvantageous advice followed more often than advantageous advice.

Keywords:
CoordinationCorrelated equilibriumExperimentProcedural fairnessRecommendationsVolunteer’s Dilemma

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Area of Science:

  • Behavioral Economics
  • Game Theory
  • Experimental Economics

Background:

  • Coordination problems are central to social interactions.
  • The Volunteer's Dilemma highlights challenges in public goods provision.
  • Procedural fairness can influence decision-making in strategic interactions.

Purpose of the Study:

  • To examine how procedural fairness affects coordination in the Volunteer's Dilemma.
  • To investigate the impact of recommendation fairness on cooperation and efficiency.
  • To understand behavioral asymmetries in response to fair and unfair recommendations.

Main Methods:

  • Laboratory experiment with two-player Volunteer's Dilemma.
  • Subjects received external action recommendations (volunteer or abstain).
  • Manipulation of recommendation fairness by varying probabilities of disadvantageous recommendations.

Main Results:

  • Recommendations improved overall efficiency, irrespective of payoff implications.
  • Behavioral asymmetries observed: disadvantageous recommendations were followed more frequently than advantageous ones.
  • Pessimistic beliefs about others' actions emerged in unequal payoff treatments.

Conclusions:

  • Procedural fairness significantly influences cooperation in coordination games.
  • Individuals' responses to recommendations depend on their perceived fairness.
  • Fairness concerns, not just expected payoffs, shape strategic behavior and beliefs.