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Lars-Olof Johansson Department of Psychology 2008-06-01 Third-party fairness Lars-Olof Johansson & Henrik Svedsäter Göteborgs Universitet, Sweden, 2009.

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Presentation on theme: "Lars-Olof Johansson Department of Psychology 2008-06-01 Third-party fairness Lars-Olof Johansson & Henrik Svedsäter Göteborgs Universitet, Sweden, 2009."— Presentation transcript:

1 Lars-Olof Johansson Department of Psychology 2008-06-01 Third-party fairness Lars-Olof Johansson & Henrik Svedsäter Göteborgs Universitet, Sweden, 2009 Lars-Olof Johansson Department of Psychology 2008-06-01

2 Lars-Olof Johansson Department of Psychology 2008-06-01 Dm AB Fairness between me and two others Egocentric fairness “inequality aversion”: advantageous / disadvantageous positions (Fehr & Schmidt, 1999) Lars-Olof Johansson Department of Psychology 2008-06-01

3 Lars-Olof Johansson Department of Psychology 2008-06-01 Dm Student 1 Fairness between two others Student 2

4 Lars-Olof Johansson Department of Psychology 2008-06-01 Aims of four experiments  To test fairness between others in both advantageous and disadvantageous positions, extending Fehr and Schmidt (1999)  To test the stability of fairness  To test whether fairness depends on how much room is given for motivated reasoning (Kunda, 1990)

5 Lars-Olof Johansson Department of Psychology 2008-06-01 Methods  We induce conflicts between self-interest and fairness  Decision makers pay real money to ensure fairness  Factorial designs  Preference ratings

6 Lars-Olof Johansson Department of Psychology 2008-06-01 Between-group designs  Pre-determined group  Coin-flip group  Forced choice group

7 Lars-Olof Johansson Department of Psychology 2008-06-01 Choice examples Experiment 1 (one group, in classrooms)

8 Lars-Olof Johansson Department of Psychology 2008-06-01 Results Experiment 1 (n = 52)

9 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 2  Pre-determined group  Coin-flip group

10 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 2 (two groups) Pre-determined (by us) group

11 Lars-Olof Johansson Department of Psychology 2008-06-01 Alt. AAlt. B1Alt. B2 You get50150 Student 1 gets507525 Student 2 gets502575 Experiment 2 Coin-flip group

12 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 2 (n = 74) Results

13 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 2 (n = 74) Results

14 Lars-Olof Johansson Department of Psychology 2008-06-01 Alternative A Alternative B Experiment 3 Preference rating

15 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 3  Pre-determined group  Coin-flip group

16 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 3 (n = 112) Mean preference for fair alternatives Results

17 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 4 (3 groups)  Pre-determined group  Coin-flip group  Forced choice group

18 Lars-Olof Johansson Department of Psychology 2008-06-01 Alt. AAlt. B1Alt. B2 You get50150 Student 1 gets5015050 Student 2 gets50 150 Experiment 4 Forced choice group

19 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 4 (n = 164) Results Mean preference for fairness on a scale from 4 (fair) to -4 (greed)

20 Lars-Olof Johansson Department of Psychology 2008-06-01 Conclusions Egocentric inequality aversion (Fehr & Schmidt, 1999) is replicated People are averse against third-party inequalities Third-party fairness is sensitive to context - Interactions between egocentric position and contextual factors

21 Lars-Olof Johansson Department of Psychology 2008-06-01 Take home message! People care for third-party fairness and are willing to pay for upholding it! The influence of third-party fairness depends largely on the decision context!

22 Lars-Olof Johansson Department of Psychology 2008-06-01 Reference Johansson, L.-O. & Svedsäter, H. (in press). Piece of cake? Allocating rewards when fairness is costly. Organizational Behaviour and Human Decision Processes.

23 Lars-Olof Johansson Department of Psychology 2008-06-01 Thank you!

24 Lars-Olof Johansson Department of Psychology 2008-06-01 Dm (50, 90) Student 1 (50, 40) Student 2 (50, 20) Fairness between me and two others Third. diff 0, 20 = 40-20 Adv. diff 0, 60 = (50+70)/2

25 Lars-Olof Johansson Department of Psychology 2008-06-01 Fehr and Schmidt model Set of players indexed by let Where and. The first term, is the material payoff of decision maker i The second term measures the utility loss from disadvantageous inequity The third term measures the utility loss from advantageous inequity.,

26 Lars-Olof Johansson Department of Psychology 2008-06-01., Proposed new model

27 Lars-Olof Johansson Department of Psychology 2008-06-01 Experiment 2 (two groups individually) Pre-determined group

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