Department of Economics
Institutional Affiliation: Google
Information about this author at RePEc
NBER Working Papers and Publications
|November 2018||When Fair Isn't Fair: Understanding Choice Reversals Involving Social Preferences|
with James Andreoni, Deniz Aydin, Blake Barton, B. Douglas Bernheim: w25257
In settings with uncertainty, tension exists between ex ante and ex post notions of fairness (e.g., equal opportunity versus equal outcomes). In a laboratory experiment, the most common behavioral pattern is for subjects to select the ex ante fair alternative ex ante, and switch to the ex post fair alternative ex post. One potential explanation embraces consequentialism and construes the reversals as manifestations of time inconsistency. Another abandons consequentialism in favor of deontological (rule-based) ethics, and thereby avoids the implication that revisions imply inconsistency. We test between these explanations by examining contingent planning and the demand for commitment. While the population appears to be heterogeneous, our findings suggest that the most common attitude toward...
|August 2013||Non-Choice Evaluations Predict Behavioral Responses to Changes in Economic Conditions|
with B. Douglas Bernheim, Daniel Bjorkegren, Antonio Rangel: w19269
A central task in microeconomics is to predict choices in as-yet-unobserved situations (e.g., after some policy intervention). Standard approaches can prove problematic when sufficiently similar changes have not been observed or do not have observable exogenous causes. We explore an alternative approach that generates predictions based on relationships across decision problems between actual choice frequencies and non-choice subjective evaluations of the available options. In a laboratory experiment, we find that this method yields accurate estimates of price sensitivities for a collection of products under conditions that render standard methods either inapplicable or highly inaccurate.