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Publications
  • 2019
  • Working Paper
  • HBS Working Paper Series

Equity Concerns Are Narrowly Framed

By: Christine L Exley and Judd B. Kessler
  • Format:Print
  • | Language:English
  • | Pages:103
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Abstract

We show that individuals narrowly bracket their equity concerns. Across six experiments including 2,360 subjects, individuals equalize components of payoffs rather than overall payoffs. When earnings comprise “small tokens" worth 1 cent and “large tokens" worth 2 cents, subjects frequently equalize the distribution of small (or large) tokens rather than equalizing total earnings. When payoffs comprise time and money, subjects similarly equalize the distribution of time (or money) rather than total payoffs. In addition, subjects are more likely to equalize time rather than money. These findings can help explain a variety of behavioral phenomena including the structure of social insurance programs, patterns of public good provision, and why transactions that turn money into time are often deemed repugnant.

Keywords

Equality and Inequality; Fairness; Perception; Outcome or Result; Resource Allocation; Behavior

Citation

Exley, Christine L., and Judd B. Kessler. "Equity Concerns Are Narrowly Framed." Harvard Business School Working Paper, No. 18-040, November 2018. (Revised June 2019.)
  • SSRN
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About The Author

Christine L. Exley

Negotiation, Organizations & Markets
→More Publications

More from the Authors

    • 2021
    • Faculty Research

    Information Avoidance and Image Concerns

    By: Christine L. Exley and Judd B. Kessler
    • 2020
    • Faculty Research

    Nonprofts in Good Times and Bad Times

    By: Christine L. Exley, Nils H. Lehr and Stephen J. Terry
    • Proceedings of the National Academy of Sciences

    Forgoing Earned Incentives to Signal Pure Motives

    By: Erika L. Kirgios, Edward H. Chang, Emma E. Levine, Katherine L. Milkman and Judd B. Kessler
More from the Authors
  • Information Avoidance and Image Concerns By: Christine L. Exley and Judd B. Kessler
  • Nonprofts in Good Times and Bad Times By: Christine L. Exley, Nils H. Lehr and Stephen J. Terry
  • Forgoing Earned Incentives to Signal Pure Motives By: Erika L. Kirgios, Edward H. Chang, Emma E. Levine, Katherine L. Milkman and Judd B. Kessler
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