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Research output: Working paper
Research output: Working paper
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TY - UNPB
T1 - Rituals of Reason
T2 - A Choice-Based Approach to the Acceptability of Lotteries in Allocation Problems
AU - Bouacida, Elias
AU - Foucart, Renaud
PY - 2022/3/23
Y1 - 2022/3/23
N2 - We study revealed preferences towards the use of random procedures in allocation mechanisms. We report the results of an experiment in which subjects vote on a procedure to allocate a reward to half of them. The first possibility is an explicitly random device: the result of a lottery. The second is either an unpredictable procedure they could interpret as meritocratic, or one that is obviously arbitrary. We run all treatments with and without control. We identify an aversion to lotteries and clearly arbitrary procedures across treatments, even though, on aggregate, subjects do not believe any procedure to give them a higher probability of success and there is no correlation between beliefs and outcomes. In line with the literature, we also find evidence of a control premium in most procedures.
AB - We study revealed preferences towards the use of random procedures in allocation mechanisms. We report the results of an experiment in which subjects vote on a procedure to allocate a reward to half of them. The first possibility is an explicitly random device: the result of a lottery. The second is either an unpredictable procedure they could interpret as meritocratic, or one that is obviously arbitrary. We run all treatments with and without control. We identify an aversion to lotteries and clearly arbitrary procedures across treatments, even though, on aggregate, subjects do not believe any procedure to give them a higher probability of success and there is no correlation between beliefs and outcomes. In line with the literature, we also find evidence of a control premium in most procedures.
KW - lotteries
KW - mechanism design
KW - allocation problems
KW - procedures
KW - tiebreaking rule
M3 - Working paper
T3 - Economics Working Papers Series
BT - Rituals of Reason
PB - Lancaster University, Department of Economics
CY - Lancaster
ER -