Fairness versus Efficiency: How Procedural Fairness Concerns Affect Coordination

Submitted by Eugenia Leon on

What happens if a mechanism that aims at improving coordination between individuals treats selected individuals unfairly? We investigate in a laboratory experiment whether procedural fairness concerns affect how well individuals are able to solve a coordination problem in a two-player Volunteer's Dilemma. Subjects receive external action recommendations that can help them avoid miscoordination if followed by both players.

Policy Design