The econometric modelling of social preferences

Theory and Decision 76 (1):119-145 (2014)
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Abstract

Experimental data on social preferences present a number of features that need to be incorporated in econometric modelling. We explore a variety of econometric modelling approaches to the analysis of such data. The approaches under consideration are: the Random Utility approach ; the Random Behavioural approach ; and the Random Preference approach. These approaches are applied in various ways to an experiment on fairness conducted by Cappelen et al. :818–827, 2007). Various models that we estimate succeed in capturing the key features of the dataset. Conclusions concerning fairness-related behaviour depend crucially on the choice of econometric model.

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