Is Competition Fair? An Experimental Study

Details

Serval ID
serval:BIB_518A4F443787
Type
Report: a report published by a school or other institution, usually numbered within a series.
Publication sub-type
Working paper: Working papers contain results presented by the author. Working papers aim to stimulate discussions between scientists with interested parties, they can also be the basis to publish articles in specialized journals
Collection
Publications
Institution
Title
Is Competition Fair? An Experimental Study
Author(s)
Bartling B., Grieder M., Zehnder C.
Institution details
Swiss National Science Foundation
Issued date
2015
Language
english
Abstract
Is competition perceived as a fair procedure? We report data from laboratory experiments where a powerful buyer can trade with one of several sellers. Sellers who feel shortchanged can engage in counterproductive behavior to punish the buyer. We find that the same unfavorable terms of trade trigger significantly less punishment if the buyer uses a competitive auction to determine the terms of trade than if she uses her authority to dictate the same terms directly. Our results inform the debate on the fairness of market outcomes by showing that the use of a competitive procedure can, by itself, affect how people judge unequal distributive outcomes.
Create date
19/10/2017 13:37
Last modification date
21/08/2019 5:18
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