Abstract
We propose an instrument to measure individuals' social preferences regarding equity and efficiency behind a veil of ignorance while controlling for idiosyncratic risk preferences. We construct a battery of portfolio and wealth distribution choice problems sharing a common budget set. A given bundle induces the same distribution over an individual's wealth in both problems. The portfolio choice solely reflects an individual's risk attitude, providing a benchmark to evaluate whether their wealth distribution choice exhibits equity or efficiency preferring tastes. Our experiments show clusters of social preference types, which are unexpectedly independent of risk preferences.
| Original language | English |
|---|---|
| Pages (from-to) | 209-232 |
| Number of pages | 24 |
| Journal | Games and Economic Behavior |
| Volume | 153 |
| DOIs | |
| Publication status | Published - Oct-2025 |
Keywords
- Inequity aversion
- Revealed preference
- Risk preferences
- Social preferences
- Veil of ignorance
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