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When the total endowment is higher, allocator and recipient payoffs differ more - in percent - under number maximizing or Rawlsian social orientation than under the OPMA principle.
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In order to find out which subgroup of recipients is served and how much they receive, we first analyze the determinants of a positive recipient payoff using a logit model.
The allocator's payoff is a function of the sum of the recipients' payoffs.
Finally, the allocator participates in the recipients' payoffs with the factor t.
The allocator's par-ticipation rate in the recipients' payoffs was set at t = 0.2, and the fine for every individual not served at c = 50 ECU.
This effect is reversed for the utilitarian type: Here the percentage difference between the allocator's payoffs and the total payoff is bigger if R = 1000 ECU, but smaller for the sum of the recipients' payoffs.
These results, of course, reflect the target functions of the NMA and the RA, because both types give primary consideration to maximizing the number of recipients and consider the recipients' payoffs only as a secondary criterion.
The allocator's payoff π 0 is t times the sum of the recipients' payoffs, minus all fines e): π 0 = t ⋅ ∑ i π i - ∑ i ∣ π i = 0 c. (3).
By measuring the decision-makers' risk preferences regarding both their own as well as the recipients' payoff, we generate new insights into how social preference theories may extend to risky situations.
From these parameter values, we can estimate the relative payoffs between the allocators and the recipients as follows: If the allocator chooses to serve all, his profit will exceed the average recipients' payoff by 40percentt since he receives one fifth of their total payoffs.
Subjects are given the chance to avoid information about a recipient's payoffs in a dictator game.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com